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Burberry has seen its pre-tax profits nosedive 40% to £383m in its full-year results, down from £634m the prior year, as the high-end retailer was hit by a slowdown in luxury spending. It comes as sales tumbled by 4% to £2.97bn in the year ended 30 March, with its full-year results “underperforming” its prior expectations. Comparable store sales over the year fell by 1% as a challenging H2 offset a “robust” H1.
Comparable sales in its fourth quarter were particularly impacted, falling by 17% in the Asia Pacific region and 12% in the Americas.
Looking ahead to its current financial year, the group said it expects H1 to “remain challenging” amid the “uncertain external environment”. It added it has identified cost saving areas to help it offset the impact of inflation in the second half of the year.
Other plans for FY25 include “refining brand expression and increasing product focus in storytelling”, as well as strengthening its engagement with customers and building out a full product offer. It also hopes to “enhance” its retail store experience, improve operational delivery, drive cost efficiencies and advance its sustainability agenda.
CEO Jonathan Akeroyd said: “Executing our plan against a backdrop of slowing luxury demand has been challenging. While our FY24 financial results underperformed our original expectations, we have made good progress refocusing our brand image, evolving our product and strengthening distribution while delivering operational improvements.
“We are using what we have learned over the past year to finetune our approach, while adapting to the external environment. We remain confident in our strategy to realise Burberry’s potential as the Modern British Luxury brand and in our ability to successfully navigate this period.”
