-By Mansi suryavanshi
INSIGHTS
- Burberry’s FY23 revenue increased by 5% at CER and 10% on a reported basis to £3.094 billion, while comparable store sales increased by 7%.
- Notably, revenues increased by 16% in the fourth quarter of FY23.
- Adjusted operating profit for the firm increased by 8% at CER and 21% reported, indicating continuous growth for FY24.
Preliminary fiscal 2023 (FY23) sales for British luxury fashion brand Burberry increased by 10% on a reported basis and 5% at constant currency rates (CER) to £3.094 billion. Comparable store sales for the firm increased by 7%. Comparable store sales increased by 16% in the fourth quarter of FY23, helped by a 13% comeback in growth in Mainland China, making this positive trend even more visible.
With mainland China excluded, the company saw growth of 17%, with particularly strong results in EMEIA (up 27%) and Asia Pacific (up 19%). However, there was a 7% fall in the Americas.
Comparable store sales for Burberry’s leather products increased by 12% in FY23 and by 15% in Q4 of that year. In the same way, comparable store sales of outerwear rose by 7% in FY23 and sharply accelerated to 30% in Q4 FY23, according to the company’s preliminary statistics for FY23, which concluded on April 1, 2023.
Burberry’s adjusted operating profit climbed by 8% at CER and 21% on a reported basis, with margins of 19% and 20,5%, respectively, in terms of profitability. The operational profit as reported increased significantly by 21%, with a margin of 21.2%.
Burberry offered upbeat advice for the upcoming year by looking ahead. The clothing company projects a high single-digit compound annual growth rate (CAGR) in revenue from its FY20 base and a CER adjusted operating profit margin of about 20% in FY24. In the medium run, Burberry anticipates revenues of £4 billion at FY22 CER.
The CEO, Jonathan Akeroyd, expressed his satisfaction with the year’s accomplishments. Our key leather goods and outerwear categories have made outstanding progress, and our financial performance has been robust. Revenue increased in the fourth quarter as growth picked up in Mainland China.
After naming Daniel Lee as our new chief creative officer, we refocused our brand approach and realised his fresh creative vision through a campaign and well-received runway show. In order to further our goal, we have simultaneously reorganised our supply chain, merchandising, and digital departments under new executives. Although the external climate is still unpredictable, I am optimistic that we can meet our short- and medium-term goals as we work to actualize Burberry’s promise as the contemporary British luxury brand.
