Burberry Group (BRBY) Trading Update summary

Strategic initiatives and brand reset

• Launched the Burberry Forward plan to reignite brand desire, focusing on core categories and disciplined product and pricing strategies.

• Initiated brand reset with campaigns like It's Always Burberry Weather and Wrapped in Burberry Festive, emphasizing outerwear and scarves.

• Enhanced visual merchandising and digital innovation, including a virtual scarf trial, to boost product visibility and customer engagement.

• Reunited creative and commercial teams in refurbished London HQ to boost collaboration.

• Strengthened product focus around recognizable brand signifiers and implemented a good, better, best pricing strategy.

Financial and regional performance

• Q3 FY25 retail revenue was £659 million, down 7% at reported rates and 3% at constant exchange rates, with a 4% currency headwind.

• Comparable store sales declined 4% year-on-year; Americas grew 4%, EMEIA declined 2%, Asia-Pacific was down 9%, and Japan grew 4%.

• Asia-Pacific saw stabilization in Mainland China, while Americas growth was driven by local marketing and store refurbishments.

• Inventory actions and markdowns provided a low-single-digit benefit to Q3 sales.

• Contribution from retail space was +1% in the quarter.

Product and category highlights

• Scarves grew by a low-teens percentage, with the Heritage Check and new animations driving demand.

• Outerwear category grew low single digits, with notable acceleration in quilts and downs.

• Pricing architecture successfully stretched from entry-level to ultra-luxe, with capes selling out by November.

• Increased prominence of check patterns improved performance in soft accessories, leather goods, and knitwear.

• Outerwear and scarves drove category growth, supported by marketing campaigns.