Burberry Group (BRBY) Q1 2025 TU earnings summary

Executive summary

• Q1 FY25 comparable store sales declined 21% year-over-year, reversing +18% growth in Q1 FY24, amid a global luxury market slowdown and macroeconomic uncertainty in all key regions.

• Retail revenue for Q1 FY25 was £458m, down 22% at reported rates, impacted by a 2% currency headwind.

• All regions saw sales declines except Japan (+6%), with Americas and Asia Pacific both down 23%, EMEIA down 16%, and Mainland China down 21%.

• Joshua Schulman appointed CEO, replacing Jonathan Akeroyd, effective July 17, bringing experience from Michael Kors, Coach, and Jimmy Choo.

• Strategy remains focused on modern British luxury, with adjustments to rebalance product mix and operational efficiency.

Financial highlights

• Retail revenue fell from £589m in Q1 FY24 to £458m in Q1 FY25, a 22% decrease at reported rates.

• Comparable store sales dropped 21% year-over-year; retail space remained broadly stable.

• Asia Pacific and Americas both down 23%, EMEIA down 16%; Mainland China down 21%.

• Currency movements negatively impacted revenue by approximately £55m and adjusted operating profit by £20m for FY25.

• Outerwear and scarves outperformed other product categories globally.

Outlook and guidance

• Trading slowdown continued into July; if trends persist, H1 FY25 operating loss and FY25 operating profit below consensus expected.

• Dividend payments for FY25 suspended to maintain balance sheet strength; no change to final dividend for period ended 30 March 2024.

• Wholesale revenue expected to decline ~25% in H1 and ~30% for FY25; capex planned at around £150m.

• Retail space to remain broadly stable in FY25.

• Actions to rebalance product offer and drive cost savings expected to improve performance in H2.