Burberry targets medium-term sales of £4bn despite tough environment

Fashion brand Burberry has today published its half year results, with revenue and adjusted operating profit up 5% and 6%, respectively, both at constant currency.

The business has recorded revenues of £1.3bn for the 26 weeks ended 1 October 2022, compared to revenues of £1.2bn for the equivalent period in 2021. Adjusted operating profit was £238m (2021: £196m).

Burberry, which has bases in West Yorkshire, says its near term guidance is maintained despite a difficult macro environment and recessionary risks in Europe and the Americas. It has established a new medium-term target to grow its sales to £4bn.

Jonathan Akeroyd, chief executive officer, said: “Burberry has an extraordinary legacy, a unique British heritage and a very strong platform to build on, as shown in our half-year results.

“Our focus in this next phase is on growth and acceleration. We have a clear plan to achieve this across brand, product and distribution and a very talented designer in Daniel Lee, supported by a passionate team.

“I am confident in our ability to deliver our medium-term targets and realise our potential as the modern British luxury brand.

“I am excited about what we can achieve in pursuit of our long-term ambition to reach £5bn in revenue.”

The company says its new product launches and seasonal collections performed strongly, with leather goods sales also enjoying good momentum.

In half one Burberry opened or renovated 22 stores including Bal Harbour in Miami and Taipei 101. It remains on track to open or refurbish 65 stores under its new concept banner this year, in addition to the 47 stores from FY22.

To support its staff with the rising cost of living this winter, the business brought forward the new UK real Living Wage pay rates as defined by the Living Wage Foundation by more than six months.