Burberry revenues hit £3bn in FY23
Adjusted operating profit rose by 21% to £634m compared to £523m for the same period last year
British luxury fashion brand Burberry has reported a 10% revenue increase to £3bn in its preliminary results for the 52 weeks ended in April.
Like-for-like sales in store increased 7% for the year, with growth accelerating to 16% in Q4 as sales in Mainland China recovered after the easing of pandemic restrictions.
Adjusted operating profit rose by 21% to £634m compared to £523m for the same period last year.
Charlie Huggins, manager of the quality shares portfolio at Wealth Club, said: “Looking to the medium to longer term, Burberry’s success will hinge on the success of new chief executive, Jonathan Akeroyd’s strategy to turn around the struggling luxury fashion house. This will take some time to judge, but the early signs are encouraging, with a good response to Burberry’s new brand designs and margins finally moving in the right direction.
“It’s not going to be a quick or easy fix. Elevating a luxury brand like Burberry and creating new products that resonate with consumers takes time, and there are no silver bullets.”
The luxury brand reported a strong performance across leather good categories, with sales up 12% during FY23, and outerwear, with sales up 7%.
During the past year, the brand has opened 60 stores and currently has plans in place to update over 50% of its stores by FY24. It has also agreed to acquire a business from an Italian supplier, Pattern SpA, to strengthen its technical outerwear capability.
Jonathan Akeroyd, chief executive officer, said: “I am very pleased with what we have achieved this year. Having appointed Daniel Lee as our new chief creative officer, we have refocused our brand aesthetic and brought his new creative vision to life with a campaign and runway show that have been very well received. At the same time, we have reorganised our supply chain, merchandising and digital teams under new leaders to drive our strategy forward.
“While the external environment remains uncertain, I am confident we can achieve our FY24 and medium-term targets as we focus on executing our plan to realise Burberry’s potential as the modern British luxury brand.”
