Burberry’s preliminary results show that revenue increased +2% at constant exchange rates, excluding Beauty wholesale revenue. Growth led by retail, comparable store sales was +3% in the year (H1: +4%, H2 +2%), with total revenue amounting to £2.73 billion (US$3.68 billion), down -1% at both constant exchange rates. Adjusted operating profit was £467 million (US$629.2 million), up +5% at constant rates, driven by positive retail performance. Adjusted operating margin in the period increased +110bps at constant exchange rates and +50bps reported to 17.1%. Reported operating profit was £410 million (US$552.2 million), up +4% after adjusting operating items of £57 million (US$76.6 million) against £65 million (US$87.5 million) in 2017, “principally relating to restructuring”.

Burberry says the small leather goods and new handbag launches continued to strengthen, starting from Spring 2018. Referring to the vertical acquisition of a leather goods business announced on May 14, Burberry says the move is consistent with its plans to transform the brand’s leather goods offer. “This will create a centre of excellence for our leather goods, covering all activities from prototyping, product innovation and engineering to the coordination of production. It will give us greater control over quality, cost, delivery and sustainability in this strategically important category”. Read more here.

The label says it is on track to achieve the results outlined in the multi-year plan announced in November 2017, which seeks to improve communication and customer experience to deliver sustainable long-term value. “We have made good initial progress; our plans are on track and we are seeing positive early signs from our retail and wholesale customers”.