Half Year 2026 Burberry Group PLC Earnings Call Transcript
Key Points
- Burberry Group PLC (BBRYF) reported a 2% growth in comparable retail sales in the second quarter, marking the first positive comp growth in two years.
- The company achieved a significant improvement in gross margin, up 410 basis points year-on-year, reaching 67.9%, driven by a healthier inventory position.
- Burberry Group PLC (BBRYF) successfully reduced net inventory by 24% compared to last year, contributing to improved financial health.
- The company is on track to deliver GBP80 million in annualized savings through its expanded restructuring program.
- Burberry Group PLC (BBRYF) experienced strong customer growth, particularly among Gen Z, with an 18% increase globally and a 10% increase in China.
- Total revenue for the first half declined by 3% at constant exchange rates, or 5% on a reported basis.
- Retail revenue decreased by 1% during the half, with space reduced by 1% and comparable retail sales remaining flat year-on-year.
- The company reported an operating loss of GBP18 million for the first half, with a net finance charge of GBP30 million.
- Traffic at Burberry Group PLC (BBRYF) stores remained challenging throughout the first half, impacting overall sales performance.
- Currency fluctuations are expected to be a headwind, with an anticipated GBP50 million impact on revenue and GBP5 million on operating profit for the full year.
Good morning. We actually have some seats here in the front row. This is like the first day at school. It's not like a fashion show, because at the fashion show, they really want to be seated in the front row.
It's all about your seat which provide initial proof points that our Burberry Forward strategy is working. With our timeless British luxury brand expression and an improved in sequential improvement in customer growth. These customers are responding strongly to our autumn and winter collections.
These are just the first steps to reigniting desire. There is a lot more to do, and I am looking forward to building on these foundations in the year ahead. There is a lot more to do, and I am looking forward to building on these foundations. We'll then update you on our strategy, our progress, and our priorities as we look to year two of Burberry Forward.
Thank you, Josh, and good morning, everyone.
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