Burberry says it remains on target despite tough economic climate

Fashion brand Burberry says a slowdown in luxury demand globally is having an impact on its current trading.

Releasing its interim results for the 26 weeks ended 30 September 2023, the business reported revenues of £1.4bn (2022: £1.3bn) and pre-tax profits of £219m (2022: £251m).

The group warns that if weaker demand continues, it is unlikely to achieve its previously stated revenue guidance for FY24, with adjusted operating profit expected to be towards the lower end of the current consensus range of £552m-£668m.

But Jonathan Akeroyd, chief executive officer, said: “We made good progress against our strategic goals, executing our priorities at pace.

“We continued to build momentum around our new creative vision with the launch of our Winter 23 collection in September, the first designed by Daniel Lee.

“While the macroeconomic environment has become more challenging recently, we are confident in our strategy to realise our potential as the modern British luxury brand, and we remain committed to achieving our medium and long-term targets.”

The group, which has bases in West Yorkshire, says during this period it made continued investments in distribution, opening or refurbishing 33 stores. Key openings/refurbishments include New Bond Street London, Rodeo Drive Los Angeles and Omotesando Tokyo.

Burberry also strengthened its supply chain with the completion of an outerwear acquisition in Italy in early October.

It reports good performance across core outerwear and leather goods categories.

Outerwear comparable store sales increased 21% in the half, while leather goods comparable store sales advanced 8%.

In addition, the business notes its beauty business generated an “excellent” performance in the half, driven by the successful launch of its latest fragrance – Burberry Goddess.