TIDMBRBY
RNS Number : 8769Y
Burberry Group PLC
19 January 2022
19 January 2022
Burberry Group plc
Third Quarter Trading Update
Momentum builds
"Full-price sales continued to grow at a double-digit percentage
compared with two years ago, accelerating from the previous quarter
and reflecting a higher quality business. Our focus categories
outerwear and leather goods performed strongly as we continued to
attract new, younger consumers to the brand. Despite the ongoing
challenges of the external environment, we are confident of
finishing the year strongly and providing an excellent platform on
which to build when our new CEO Jonathan Akeroyd joins in April."
Gerry Murphy, Chair
-- Strong underlying revenue performance in the third quarter,
building on the progress made in H1:
o Acceleration in full-price comparable store sales up 26% vs
LLY** (Q2 FY22 +10%), driven by ongoing strength in the Americas
and a material improvement in Asia Pacific and EMEIA
o Comparable store sales down 3% vs LLY (Q2 FY22 flat) on
planned exit of markdown
-- Quarter achieved highest level of earned reach to date on
Instagram driven by brand activations including pop-up on Jeju
Island coupled with strong momentum on TikTok
-- Strengthened our position with new consumers driving
double-digit full-price sales growth vs LLY across all product
categories
-- Ongoing full-price strength on digital channels with sales up high double-digits vs LLY
-- New store concept transforming how our customers experience
our brand and product with 31 stores in the new design including
flagship Plaza 66, Shanghai
-- Continued to embed ESG across the business; announced
refinancing of Revolving Credit Facility to GBP300m Sustainability
Linked Loan with funding linked to our industry-leading ambition to
be Climate Positive by 2040
-- GBP150m share buyback well advanced and on course for completion before year end
Retail revenue 13 weeks ended 25 December
25 Dec 26 Dec % change
GBP million 2021 2020 Reported FX CER
------------------------------ ------------------ ------ --------------- ---
Retail revenue 723 688 5% 8%
Comparable store sales* +7% (-3% vs LLY) -9%
Full-price comparable +15% (+26% vs LLY) n/a
store sales**
------------------------------ ------------------ ------ --------------- ---
*See page 4 for definition, **LLY is compared with Q3 FY20
Outlook
Assuming no further changes in the external environment, we
expect current year adjusted operating profit to grow in the region
of 35% at CER*** compared with the prior year. In addition, the
currency headwind is now expected to be GBP79m (from c.GBP100m) on
revenue and GBP27m (from c.GBP40m) on adjusted operating profit. We
maintain our medium-term guidance for high single-digit top line
growth and meaningful margin accretion at CER****.
*** including the impact of the 53(rd) week ****See Appendix
The financial information contained herein is unaudited
Business review
Against an ongoing challenging backdrop, full-price sales
accelerated significantly in the third quarter, increasing 26% vs
LLY on a comparable basis. Total comparable store sales fell 3% vs
LLY impacted by our planned exit of markdown across mainline and
digital as we enhanced the quality of our revenues.
We continued to strengthen our position with new, younger
consumers, with new customers driving double-digit full-price sales
growth across all product categories. Regionally, full-price
comparable store sales were driven by continued strong performance
in the Americas, a material sequential improvement in Asia Pacific
as COVID-19 restrictions eased and improving trends in EMEIA
despite an ongoing lack of tourism.
In terms of brand activity, we continued to drive engagement
with consumers through distinctive and meaningful storytelling and
experiences. In the quarter, we launched our first dedicated
outerwear campaign celebrating our iconic outerwear offer with an
inspirational brand film unlocking the themes of freedom and
exploration, which achieved record views across digital media, and
launched activations across physical and digital channels. We
engaged with customers through innovative, luxury experiences
including large-scale, immersive brand activations at Plaza 66,
Shanghai and the biggest of its kind for Burberry in South Korea on
Jeju Island. This was amplified globally through 24 pop-ins and 10
pop-ups, as well as throughout key social media including our first
branded TikTok sky filter and achieving our highest level of earned
reach to date on Instagram.
In product, we made further progress in our focus categories
outerwear and leather goods. Full-price outerwear sales grew 38% vs
LLY supported by the campaign and new elevated check range in Birch
Brown colourway. Leather goods also strengthened over the prior
period, with full-price sales up 29% vs LLY as we extended the Lola
family with the introduction of the crossbody, tote and SLG
versions as part of our Winter collection. As we enter our final
quarter of FY22 we are excited about the recent launch of our Lunar
New Year campaign celebrating the year of the Tiger with a bespoke
product capsule and dedicated fashion campaign.
At the same time, we continue to elevate the customer experience
with the roll out of our new store concept. In total, we now have
31 stores in the new design including our second flagship Plaza 66,
Shanghai, and we remain on track to deliver around 50 new concept
stores by the end of the financial year. The new store concept is
transforming how our customers experience our brand and product and
is supporting revenue growth.
Digital innovation remains a key driver of growth for the
business with digital full-price sales up high double digits vs
LLY. We are seeing strong and increasing engagement with customers
globally buying online as an outcome of enhancements we have made
to the online purchase journey including greater personalisation.
We are also seeing strong adoption by customers of omnichannel
solutions, including booking store appointments, which we are
expanding across more stores and countries. We created an immersive
travelling trench experience inspired by the Trench Room in our
social retail store in Shenzhen and brought it to stores across
Mainland China where it generated strong engagement, traffic and
sales. Building on our partnerships with digital innovators, as
part of our outerwear activation on Jeju Island in South Korea, we
designed an immersive experience, including Augmented Reality
technology that was powered by TikTok and supported strong
engagement with our customers.
We continue to embed ESG across our operations and remain on
track to complete our 2017-2022 Responsibility goals this year. We
announced the refinancing of our Revolving Credit Facility to a
GBP300m Sustainability Linked Loan with funding linked to the
achievement of key ESG targets as part of our ambition to become
Climate Positive by 2040. This includes accelerating emissions
reductions across our extended supply chain (Scope 3) by 46% by
2030 and becoming net-zero by 2040, 10 years ahead of the 1.5degC
pathway set out in the Paris Agreement. It also involves investing
in nature-based projects with carbon benefits that restore and
protect natural ecosystems and enhance the livelihoods of global
communities.
We continued our support for young people, extending our
partnership with international footballer and youth advocate Marcus
Rashford MBE to help disadvantaged children in the UK develop their
literacy skills. We also provided funding for new libraries and
books in underserved communities in the U.S., Japan and Hong Kong
S.A.R., China.
We continue to deliver on our Global D&I Strategy, including
launching 'Demonstrating Allyship' workshops which will be
rolled-out to all colleagues globally over the next 12 months. On
World Mental Health Day we also launched a new Global Bereavement
Policy, leaders' guide and colleague support site, which includes
paid time off for all colleagues who suffer a bereavement,
including pregnancy loss.
We celebrated our first year of working with The Valuable 500
and Business Disability Forum on International Day of Persons with
Disabilities. As part of our commitment to building a more
inclusive future, we are working to improve accessibility across
our stores, manufacturing sites and offices.
Financial performance
FY22 vs LY FY22 vs LLY
Q1 Q2 H1 Q3 Q1 Q2 H1 Q3
----- ---- ----
Comparable store
sales growth 90% 6% 37% 7% 1% flat 1% -3%
Comparable full-price
sales growth 121% 10% 49% 15% 26% 10% 18% 26%
----- ---- ---- ---- ---- ----- ----
Our underlying performance was strong with full-price comparable
store sales up 26% vs LLY (+15% vs LY) accelerating materially from
the previous quarter (Q2 full-price +10% vs LLY). Total comparable
store sales declined 3% vs LLY (+7% vs LY) in the quarter with the
strong full-price growth offset by a low double-digit (mid-single
digit vs LY) headwind from the planned exit markdown and reduced
trade in outlets.
Space growth contributed 1% to retail sales in the quarter vs LY
while FX was a 3% headwind. In total reported retail sales grew 5%
YoY.
FY22 vs Comparable store sales Comparable full-price
LLY growth sales growth
Q1 Q2 H1 Q3 Q1 Q2 H1 Q3
------ ------ ------ ----- ------
Group 1% flat 1% -3% 26% 10% 18% 26%
Asia Pacific 7% 3% 5% flat 23% 5% 14% 22%
EMEIA -38% -25% -31% -17% -33% -27% -30% -4%
Americas 34% 42% 38% 8% 114% 81% 98% 72%
------ ------ ------ ----- ------ ------ ------ ----
Asia Pacific comparable store sales were flat vs LLY with
full-price comparable store sales materially accelerating from
Q2:
-- Mainland China comparable store sales grew 15% with
full-price comparable store sales up 37% vs LLY, an improvement
over the prior quarter due to reduced COVID-19 disruption.
-- South Korea outperformed with comparable store sales up 28%
vs LLY with continued strength in full-price comparable store
sales, 62% ahead of pre pandemic levels.
-- Japan and South Asia Pacific improved quarter on quarter as
COVID-19 related restrictions eased however performance remains
soft due to limited tourist traffic.
EMEIA improved significantly quarter on quarter with comparable
store sales down 17% vs LLY and full-price comparable store sales
falling only 4%. We are very encouraged by the performance given
the ongoing drag from the lack of tourists, which accounted for
around 40% of pre-pandemic revenues in the region.
Americas saw continued strong performance in full-price
comparable store sales up 72% vs LLY driven by new customers.
Comparable store sales grew 8% vs LLY with the region being most
impacted in the quarter by the exit of markd own.
Enquiries
Investors and analysts 020 3367 4458
Julian Easthope VP, Investor Relations Julian.Easthope@burberry.com
Media 020 3367 3764
Andrew Roberts SVP, Corporate Relations Andrew.Roberts@burberry.com
---------------------------------------- ----------------------------
-- There will be a conference call for investors and analysts to
discuss this update today at 9am (UK time). The conference call can
be accessed live on the Burberry corporate website,
www.burberryplc.com with a replay available later in the day.
-- Burberry will announce its Preliminary results for the 53
weeks ending 2 April 2022 on 18 May 2022
Certain statements made in this announcement are forward-looking
statements. Such statements are based on current expectations and
are subject to a number of risks and uncertainties that could cause
actual results to differ materially from any expected future
results in forward-looking statements. Burberry Group plc
undertakes no obligation to update these forward-looking statements
and will not publicly release any revisions it may make to these
forward-looking statements that may result from events or
circumstances arising after the date of this document. Nothing in
this announcement should be construed as a profit forecast. All
persons, wherever located, should consult any additional
disclosures that Burberry Group plc may make in any regulatory
announcements or documents which it publishes. All persons,
wherever located, should take note of these disclosures. This
announcement does not constitute an invitation to underwrite,
subscribe for or otherwise acquire or dispose of any Burberry Group
plc shares, in the UK, or in the US, or under the US Securities Act
1933 or in any other jurisdiction.
Notes to editors
-- Burberry is a global luxury brand with a distinctly British attitude.
-- At 25 December 2021, globally Burberry had 218 retail stores,
150 concessions, 58 outlets and 39 franchise stores, excluding pop
up stores.
-- Burberry is listed on the London Stock Exchange (BRBY.L) and
is a constituent of the FTSE 100 index. Its ADR symbol is
OTC:BURBY.
-- BURBERRY, the Equestrian Knight Device, the Burberry Check
and the Thomas Burberry Monogram and Print are trademarks belonging
to Burberry.
Constant exchange rates (CER) removes the effect of changes in
exchange rates compared to the prior period. This takes into
account both the impact of the movement in exchange rates on the
translation of overseas subsidiaries' results and also on foreign
currency procurement and sales through the Group's UK supply
chain.
Comparable store sales is the year-on-year change in sales from
stores trading over equivalent time periods and measured at
constant foreign exchange rates. It also includes online sales. The
measurement of comparable sales has not excluded stores temporarily
closed as a result of the COVID-19 outbreak.
Full price sales is sales from items sold at full retail price
in our own mainline retail and online network. We have described
the change in full price sales based on the year-on-year change and
measured at constant foreign exchange rates.
Markdown sales is from items that are sold at a discount to the
full retail price in our own mainline retail and online
network.
Certain financial data within this announcement have been
rounded.
APPENDIX
Detailed guidance for FY22*
Item Financial impact
Markdown policy As guided, we have exited markdowns in digital
and mainline stores in FY22, leading to a mid-single
digit headwind against our comparable store sales
in FY22 vs LY and high single digit % v LLY
------------------------------------------------------
Wholesale Full year wholesale is expected to be up high
30s% at CER (mid 30s% previously)
------------------------------------------------------
Impact of retail For the FY, space is expected to contribute low
space on revenues single digit percentage with H2 also up low single
digit percentage on a 52 week basis
------------------------------------------------------
Gross margin To remain stable at 70% YoY at CER
------------------------------------------------------
Tax We expect the adjusted tax rate to be around 22%
------------------------------------------------------
Capex Capex is expected to be in the region of GBP150m
(GBP160m previously) including the cost of around
50 stores being opened/refurbished in the new
concept
------------------------------------------------------
Currency At 24 December spot rates, the impact of year-on-year
exchange rate movements is expected to be a GBP79m
headwind on revenue and GBP27m headwind on adjusted
operating profit
------------------------------------------------------
Calendar Please note that FY22 is a 53 week calendar year
with an extra week in Q4.
------------------------------------------------------
*Guidance assumes constant exchange rates, a stable economic
environment and current tax legislation
Exchange rates Forecast effective rates Actual average exchange
for rates
FY22
GBP1= 24 December 29 October FY21
2021 2021
------------- ------------ ------------------------
Euro 1.17 1.17 1.12
US Dollar 1.36 1.38 1.30
Chinese Yuan 8.74 8.88 8.85
Hong Kong Dollar 10.62 10.75 10.08
Korean Won 1,589 1,602 1,514
------------- ------------ ------------------------
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
TSTVVLFFLFLZBBD
(END) Dow Jones Newswires
January 19, 2022 02:00 ET (07:00 GMT)
Burberry (LSE:BRBY)
Gráfica de Acción Histórica
De Mar 2024 a Abr 2024
Burberry (LSE:BRBY)
Gráfica de Acción Histórica
De Abr 2023 a Abr 2024