Key facts
- Burberry reported 5% comparable store sales growth for the April-June quarter.
- Sales in the Europe and Middle East region decreased by 3%.
- Strong spending in the U.S. drove the quarterly sales growth.
- The conflict in the Middle East negatively affected tourist spending in Europe.
- Burberry's fourth-quarter sales grew 5%, with annual growth at 2%.
- Operating profit for the year was 115 million pounds.
Burberry met analyst expectations for sales growth in its April-June quarter, reporting a 5% increase in comparable store sales, largely driven by strong consumer spending in the United States. However, the company noted that conflict in the Middle East had a dampening effect on tourist spending in its Europe and Middle East region, leading to a 3% decline in sales for that area.
In its fourth quarter, Burberry also reported comparable retail sales growth of 5%, contributing to a 2% annual growth rate, which aligned with analyst forecasts. During this period, sales in the Europe, Middle East, India, and Africa (EMEIA) region decreased by 2%. In contrast, the Americas and Greater China regions experienced robust growth of 10% each, attributed to a "reignited brand momentum."
Chief executive Joshua Schulman described the financial year as a "meaningful inflection point," signaling a return to profitable sales growth after implementing cost-cutting measures, including layoffs. The company's operating profit for the year rebounded to 115 million pounds, a significant improvement from a loss in the previous year. Additionally, Burberry announced that Chair Gerry Murphy will be retiring later in the year and will be succeeded by William Jackson.