Brand repositioning underway, with strong initial response
“We are energised by the early results as we begin to transform and reposition Burberry. The initial response from influencers, press, buyers and customers to our new creative vision and Riccardo’s debut collection Kingdom has been exceptional. Mindful that we are only in the first phase of our multi-year plan, we continue to manage dynamically through the transition. We confirm our outlook for the full year,” states Marco Gobbetti, Chief Executive Officer
Exceptional response to new creative vision, including rebranding and Riccardo’s debut collection
- Successful launch of new go-to-market model, with social selling innovation contributing to building brand heat
- Consumer perception shifting; significant increase in engagement on Instagram and WeChat. Organic endorsement from some of the world’s most followed influencers
- Strong wholesale response to new product; distribution headwind through to FY 2020, as guided, with majority of negotiations now completed
- Managing business dynamically in period of transition to deliver financial objectives and protect the brand
Outlook
- Maintaining FY 2019 guidance including delivery of cumulative cost savings of GBP 100 million
The financial information contained herein is unaudited.
All metrics and commentary in the Interim Review exclude adjusting items unless stated otherwise.
# 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.
With effect from April 1, 2018, Burberry is preparing its full year consolidated financial statements to a Saturday within seven days of the 31 March. The 26-week period endedSeptember 29, 2018 has one fewer day than the prior year comparative period ended 30 September 2017.
The following alternative performance measures are presented in this announcement: adjusted performance measures, comparable sales, revenue excluding Beauty wholesale and free cash flow. The definitions of these alternative performance measures are set out in the Appendix on page 11.
Cumulative cost savings are savings compared to FY 2016 operating expenses.
Certain financial data within this announcement have been rounded.
