14 May 2025
BURBERRY GROUP PLC
PRELIMINARY RESULTS FOR 52 WEEKS ENDED 29 MARCH 2025
"After a challenging first half, we have moved at pace to implement Burberry Forward, our strategic plan to reignite brand desire, improve our performance and drive long-term value creation. Our customers are responding to our Timeless British Luxury brand expression. With improvement in brand sentiment, we will be ramping up the frequency and reach of our campaigns as our Autumn and Winter collections arrive in store. The continued resilience of our outerwear and scarf categories reaffirms my belief that we have the most opportunity where we have the most authenticity. While we are operating against a difficult macroeconomic backdrop and are still in the early stages of our turnaround, I am more optimistic than ever that Burberry's best days are ahead and that we will deliver sustainable profitable growth over time."
Joshua Schulman, Chief Executive Officer
Period ended £ million | 52 weeks ended 29 March 2025 | 52 weeks ended 30 March 2024 | YoY % change Reported FX | YoY % change CER |
Revenue | 2,461 | 2,968 | (17) | (15) |
Retail comparable store sales* | (12%) | (1%) | ||
Adjusted operating profit* | 26 | 418 | (94) | (88) |
Adjusted operating margin* | 1.0% | 14.1% | (1300bps) | (1210bps) |
Adjusted diluted EPS (pence)* Reported operating (loss)/profit | (14.8) (3) | 73.9 418 | (120) (101) | (107) |
Reported operating margin | (0.1%) | 14.1% | (1420bps) | |
Reported diluted EPS (pence) | (20.9) | 73.9 | (128) | |
Free cash flow* | 65 | 63 | 5 | |
Proposed dividend (pence) | - | 61.0 | n/a |
*See page 11 for definitions of alternative performance measures
Comparable store sales by region*
vs LY | Group | Asia Pacific* | EMEIA | Americas |
Q4 | (6%) | (9%) | (4%) | (4%) |
FY25 | (12%) | (16%) | (8%) | (9%) |
*See page 5 for further detail including split of Asia Pacific
FY25 FINANCIAL PERFORMANCE
Revenue -15% at CER, -17% reported rates
Retail comparable sales -12%; -5% in H2 vs -20% in H1
Adjusted operating profit £26m; H2 £67m profit offsetting H1 £41m loss
Reported operating loss £3m after £29m adjusting items charge
Gross margin 62.5%, -470bps at CER and -520bps reported rates
Adjusted net operating expenses -3% CER, -5% reported
Free cash inflow of £65m
STRATEGIC PROGRESS
After a challenging first half, in November we launched Burberry Forward. Our immediate intervention to reset the brand storytelling, enhance visual merchandising in stores and online, and align product focus to our core categories has resulted in a significant improvement in our comparable retail sales in the second half relative to the first half. This gives us confidence that our strategic plan is the right path forward.
In H2, we took the following actions:
Reset brand expression to Timeless British Luxury with 360-degree "It's Always Burberry Weather" outerwear and "Wrapped in Burberry" festive and Lunar New Year campaigns
Presented Winter 25 runway show at Tate Britain which celebrated our iconic brand codes and our hero categories, resulting in a significant improvement in brand sentiment and engagement
Initiated rebalancing of product offer with fewer, bigger ideas; aligned pricing with category authority in a luxury context
Enhanced visual merchandising in stores with more mannequins and improved product densities; launched scarf bar pilot
Updated styling online and introduced new digital innovations to broaden appeal, delivering a step change in performance
Strengthened alignment between commercial and creative teams and evolved operating model to drive simplification, increase agility and improve productivity
Accelerated actions to address inventory overhang and restore scarcity with gross inventory of -7% CER at March-25 ahead of guidance
Initiated cost savings programme with £24m delivered in FY25.
ORGANISING FOR GROWTH
At the heart of Burberry Forward is our commitment to restoring a culture of creative and commercial alchemy rigorously focused on our customer. Our plan is underpinned by a step change in productivity, simplification, and financial discipline. Today, we are announcing organisational changes aimed at enhancing collaboration across our business, increasing our agility, driving efficiency and profitability while protecting our investment in consumer-facing areas. Reimagining Burberry in this way will ensure that the organisation is fit for the future in a demanding and dynamic global market.
We expect the proposed changes to unlock an additional £60m of savings by FY27, enabling us to continue to fund our biggest growth opportunities. This is incremental to our previously announced £40m cost-savings programme, bringing the combined annualised savings to £100m by FY27. We expect these proposed incremental savings to come from operating expenses, with increased efficiency of spend in procurement and real estate, and a reduction in people-related costs which could impact around 1,700 roles globally over the life of the programme, subject to consultation where applicable.
The associated one-off costs across both programmes, which are largely cash, are expected to total around
£80m (£29m exceptional cost in FY25 with the balance in FY26).
FY26 OUTLOOK
We are still in the early stages of our turnaround. The current macroeconomic environment has become more uncertain in light of geopolitical developments.
Our focus in the year ahead will be to build on the early progress we have made in reigniting brand desire, as a key requisite to growing the topline. We will deliver margin improvement with a continued focus on simplification, productivity and cash flow. We expect to see the impact of our actions build as the year progresses.
We are confident that we are positioning the business for a return to sustainable, profitable growth.
All metrics and commentary in the Group Financial Highlights and Business and Financial Review exclude adjusting items unless stated otherwise.
The following alternative performance measures are presented in this announcement: CER, adjusted (loss)/profit measures, comparable sales, free cash flow, cash conversion, adjusted EBITDA and net debt. The definitions of these alternative performance measures are on page 11.
Certain financial data within this announcement have been rounded. Growth rates and ratios are calculated on unrounded numbers.
The financial information for the 52 weeks ended 29 March 2025 and 30 March 2024 contained in this document does not constitute statutory accounts as defined in section 435 of the Companies Act 2006. The financial information for the 52 weeks ended 29 March 2025 and 30 March 2024 has been extracted from the consolidated financial statements of Burberry Group plc for the 52 weeks ending 29 March 2025 which have been approved by the directors on 13 May 2025 and will be delivered to the Registrar of Companies in due course. The auditor's report on those financial statements was unqualified and did not contain a statement under section 498 of the Companies Act 2006.
This announcement contains information that qualified or may have qualified as inside information for the purposes of the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 ("MAR"). The person responsible for arranging the release of this announcement on behalf of Burberry Group plc is Gemma Parsons, Company Secretary.
Enquiries
Investors and analysts Lauren Wu Leng
Media Samantha Pacan
VP, Investor Relations
020 3367 3524
lauren.wuleng@burberry.com
VP, Corporate Relations
020 3367 3764
samantha.pacan@burberry.com
There will be a presentation today at 9.30am (UK time) for investors and analysts at Horseferry House, Horseferry Road, London, SW1P 2AW
The presentation can also be viewed live on the Burberry website https://www.burberryplc.com/, you can click here to register
The supporting slides will be available on the website prior to the presentation and an indexed replay will be available later in the day
Burberry will issue its First Quarter Trading Update on 18 July 2025
The AGM will be held on 16 July 2025
Certain statements made in this announcement are forward-looking statements. Such statements are based on current expectations and are subject to a number of risks and uncertainties that could cause actual results to differ materially from any expected future results in forward-looking statements. Burberry Group plc undertakes no obligation to update these forward-looking statements and will not publicly release any revisions it may make to these forward-looking statements that may result from events or circumstances arising after the date of this document. Nothing in this announcement should be construed as a profit forecast. All persons, wherever located, should consult any additional disclosures that Burberry Group plc may make in any regulatory announcements or documents which it publishes. All persons, wherever located, should take note of these disclosures. This announcement does not constitute an invitation to underwrite, subscribe for or otherwise acquire or dispose of any Burberry Group plc shares, in the UK, or in the US, or under the US Securities Act 1933 or in any other jurisdiction.
Burberry is listed on the London Stock Exchange (BRBY.L) and is a constituent of the FTSE 250 index. ADR symbol OTC:BURBY. BURBERRY, the Equestrian Knight Device, the Burberry Check, and the Thomas Burberry Monogram and Print are trademarks belonging to Burberry.
https://www.burberryplc.com LinkedIn: Burberry
SUMMARY INCOME STATEMENT
Period ended
52 weeks
52 weeks
YoY % change
YoY % change
£ million
ended
29 March
ended
30 March
Reported FX
CER
2025
2024
Revenue
Cost of sales
2,461
(923)
2,968
(959)
(17)
(15)
Gross profit
1,538
2,009
(23)
(21)
Gross margin
62.5%
67.7%
(520bps)
(470bps)
Adjusted net operating expenses*
(1,512)
(1,591)
(5)
(3)
Adjusted net opex as a % of sales*
61.5%
53.6%
780bps
740bps
Adjusted operating profit*
26
418
(94)
(88)
Adjusted operating margin*
Adjusting operating items
1.0%
(29)
14.1%
-
(1300bps)
(1210bps)
Operating (loss)/profit
(3)
418
(101)
Operating margin
(0.1%)
14.1%
(1420bps)
Net finance expense
(63)
(35)
82
(Loss)/profit before taxation
(66)
383
(117)
Taxation
(9)
(112)
(92)
Non-controlling interest
-
(1)
n/a
Attributable (loss)/profit
(75)
270
(128)
Adjusted (loss)/profit before taxation*
(37)
383
(110)
(103)
Adjusted diluted EPS (pence)*
(14.8)
73.9
(120)
(107)
Diluted EPS (pence)
(20.9)
73.9
(128)
Weighted average number of diluted
358.4
366.2
(2)
ordinary shares (millions)**
*Excludes adjusting items. All items below adjusting operating items on a reported basis unless otherwise stated. For detail, see appendix.
**As the Group incurred an attributable loss for the 52 weeks to 29 March 2025, the effect of 0.9m dilutive shares was antidilutive and therefore not included in the calculation of diluted loss per share for the period. For detail see note 9 of the Financial Statements.
FINANCIAL PERFORMANCE
Revenue by channel
Period ended
£ million
52
weeks ended 29 March
2025
52
weeks ended 30 March
2024
YoY % change Reported FX
YoY % change
CER
Retail
2,076
2,400
(13)
(11)
Comparable store sales growth
(12%)
(1%)
Wholesale
319
506
(37)
(35)
Licensing
66
62
6
9
Revenue
2,461
2,968
(17)
(15)
In FY25, comparable store sales fell 12%. The contribution from space was 1%, leading to an 11% decline in retail sales at CER and a 13% decline at reported rates.
Comparable store sales growth by region
FY25 vs LY
Q1
Q2
H1
Q3
Q4
H2
FY
Group
(21%)
(20%)
(20%)
(4%)
(6%)
(5%)
(12%)
Asia Pacific
(23%)
(28%)
(25%)
(9%)
(9%)
(9%)
(16%)
EMEIA
(16%)
(10%)
(13%)
(2%)
(4%)
(3%)
(8%)
Americas
(23%)
(18%)
(21%)
4%
(4%)
1%
(9%)
Asia Pacific comparable store sales declined 16% in FY25 and 9% in Q4.
Mainland China declined 15% in the year and 8% in Q4. Globally, the Chinese customer group was a mid-single digit percentage lower than last year in Q4
South Korea fell 18% in the year and 11% in Q4
Japan remained in growth, up 1% in the year and 4% in Q4 boosted by tourist spend mainly from Chinese customers
South Asia Pacific declined 28% in the year and 16% in Q4.
EMEIA comparable store sales declined 8% in FY25 and 4% in Q4. Growth from local customers partially offset a decline in tourist spending in Q4. Business in our UK home market continues to be seriously impacted by the withdrawal of VAT refunds for overseas visitors in 2021 which has made the UK the least competitive destination in Europe for tourist shopping.
Americas comparable store sales fell 9% in the year and 4% in Q4. Globally, the Americas customer was in line with the regional performance.
By product
Outerwear and scarves continued to perform better than the group average in the year and Q4
Ready-to-wear performed broadly in line with the group average in the year and Q4
Leather goods lagged the group average in the year and Q4.
Store footprint
We opened 26 stores in the year and closed 26, with 422 directly operated stores as at 29 March 2025.
Wholesale
Wholesale revenue declined 35% at CER and 37% at reported rates in FY25 as a result of a strategic review of our partners, as well as the challenging consumer demand environment.
Licensing
Licensing revenue grew 9% at CER and 6% at reported rates, driven by continued strength in fragrance.
OPERATING (LOSS)/PROFIT ANALYSIS
Adjusted operating profit
Period ended
£ million
52 weeks ended
29 March 2025
52 weeks ended
30 March 2024
YoY % change
Reported FX
YoY % change
CER
Revenue
2,461
2,968
(17)
(15)
Cost of sales
(923)
(959)
(4)
(2)
Gross profit
1,538
2,009
(23)
(21)
Gross margin %
62.5%
67.7%
(520bps)
(470bps)
Adjusted net operating expenses*
(1,512)
(1,591)
(5)
(3)
Adjusted net opex as a % of sales*
61.5%
53.6%
780bps
740bps
Adjusted operating profit*
26
418
(94)
(88)
Adjusted operating margin %*
1.0%
14.1%
(1300bps)
(1210bps)
*Excludes adjusting items
Adjusted operating profit was £26m with an adjusted operating margin of 1%.
Gross margin declined by 470bps at CER and 520bps at reported rates, driven mostly by inventory exit to address our overhang. These actions delivered gross inventory of -7% at CER and -9% at reported rates as of 29 March 2025.
Adjusted net operating expenses reduced by 3% at CER and 5% at reported rates. This was driven by tight cost control alongside a reduction in our variable costs. We delivered £24m in savings from our organisational efficiency programme initiated during the year.
FX was a headwind, impacting adjusted operating profit by £25m.
ADJUSTING ITEMS*
Adjusting items were a £29m charge (FY24: £nil).
-
(29)
(29) -
Restructuring costs
Adjusting items
52 weeks ended
30 March 2024
52 weeks ended
29 March 2025
Period ended
£ million
*For detail on adjusting items see note 6 of the Financial Statements
Restructuring costs of £29m (FY24: £nil) were incurred, arising primarily as a result of the Burberry Forward transformation programme initiated during the period. The costs principally related to redundancies and consultancy costs and were recorded in operating expenses.
ADJUSTED (LOSS)/PROFIT BEFORE TAX*
After an adjusted net finance expense of £63m (FY24: £35m), adjusted loss before tax was £37m (FY24 adjusted profit before tax: £383m).
*For detail on adjusting items see note 6 of the Financial Statements
TAXATION*
The Group's adjusted effective tax rate was -43.5% (FY24: 29.2%) and the reported effective tax rate was
-13.2% (FY24: 29.2%). The change in the FY25 reported tax rate versus FY24 was driven by reduced profitability causing routine disallowed expenses and prior year adjustments to have a greater impact.
*For detail see note 8 of the Financial Statements
CASH FLOW
Represented statement of cash flows
The following table is a representation of the cash flows.
Period ended
£ million
52 weeks ended
29 March
2025
52 weeks ended
30 March
2024
Adjusted operating profit
26
418
Depreciation and amortisation
413
379
Working capital
75
(166)
Other including adjusting items
12
34
Cash generated from operating activities
526
665
Payment of lease principal and related cash flows
(225)
(235)
Capital expenditure
(151)
(208)
Proceeds from disposal of non-current assets
12
-
Interest
(54)
(20)
Tax
(43)
(139)
Free cash flow*
65
63
*For a definition of free cash flow see page 12
Free cash flow was £65m in the year (FY24: £63m). The major components were:
Cash generated from operating activities decreased by £139m to £526m due primarily to:
A £392m reduction in adjusted operating profit
A working capital inflow of £75m (FY24: £166m outflow) driven by lower inventory levels
Capital expenditure of £151m (FY24: £208m) as planned
Tax of £43m (FY24: £139m) reflecting lower profitability
Cash net of overdrafts on 29 March 2025 was £708m (30 March 2024: £362m). On 29 March 2025 borrowings were £738m with a £450m bond raised in the year, in addition to the existing £300m sustainability bond maturing in September 2025. This resulted in net debt of £30m before lease liabilities of
£1,081m (30 March 2024: net cash £63m). After lease liabilities, net debt in the period was £1,111m (30 March 2024: £1,125m). Net Debt/Adjusted EBITDA was 2.3x. The increase in leverage from 1.4x at 30 March 2024 was driven by lower profitability. The Group's existing £300m Revolving Credit Facility (RCF), as well as the
£75m RCF entered into in the year both remain undrawn.
Period ended £ million | 52 weeks ended 29 March 2025 | 52 weeks ended 30 March 2024 |
Adjusted EBITDA | 483 | 811 |
Cash net of overdrafts | (708) | (362) |
Bond | 738 | 299 |
Lease debt | 1,081 | 1,188 |
Net Debt* | 1,111 | 1,125 |
Net Debt/Adjusted EBITDA | 2.3x | 1.4x |
*For a definition of adjusted EBITDA and net debt see page 12
APPENDIX
Detailed guidance for FY26
Item | Financial impact |
Impact of retail space on revenues | Space is expected to be broadly stable in FY26. |
Wholesale revenue | Wholesale is expected to decline by a mid-teens percentage in H1 FY26. |
Opex | Annualised cost savings expected to be £80m in FY26, of which £24m was delivered in FY25. |
Adjusting items | Restructuring charge expected to be around £50m in FY26. |
Currency | As at 2 May 2025 spot rates, the impact of year-on-year exchange rate movements is expected to be a c.£55m headwind on revenue and c.£10m headwind on adjusted operating profit. |
Capex | Capex is expected to be around £130m. |
Note: Guidance based on CER at FY25 rates
Retail/wholesale revenue by destination* | YoY % change Reported FX | CER | |||
Period ended 52 weeks ended | 52 weeks ended | ||||
29 March | 30 March | ||||
£ million 2025 | 2024 | ||||
Asia Pacific (94% retail)* | 1,043 | 1,286 | (19) | (16) | |
EMEIA (76% retail)* | 842 | 1,017 | (17) | (16) | |
Americas (90% retail)* | 510 | 603 | (15) | (13) | |
Total (87% retail)* | 2,395 | 2,906 | (18) | (15) | |
*Mix based on FY25
Retail/wholesale revenue by product division | ||
Period ended 52 weeks ended 52 weeks ended | YoY % change | |
29 March 30 March | ||
£ million 2025 2024 | Reported FX | CER |
Accessories 841 1,055 | (20) | (18) |
Womenswear 718 860 | (17) | (14) |
Menswear 732 842 | (13) | (11) |
Childrenswear and other 104 149 | (30) | (28) |
Total 2,395 2,906 | (18) | (15) |
Store portfolio | Directly operated stores | ||||
Stores | Concessions | Outlets | Total | Franchise stores | |
At 30 March 2024 | 227 | 139 | 56 | 422 | 33 |
Additions | 16 | 10 | - | 26 | 1 |
Closures | (14) | (10) | (2) | (26) | (1) |
At 29 March 2025 | 229 | 139 | 54 | 422 | 33 |
Store portfolio by region* | Directly operated stores | ||||
At 29 March 2025 | Stores | Concessions | Outlets | Total | Franchise stores |
Asia Pacific | 126 | 89 | 22 | 237 | 10 |
EMEIA | 45 | 38 | 17 | 100 | 23 |
Americas | 58 | 12 | 15 | 85 | - |
Total | 229 | 139 | 54 | 422 | 33 |
*Excludes the impact of pop up stores
Adjusted operating profit* Period ended £ millions | 52 weeks ended 29 March 2025 | 52 weeks ended 30 March 2024 | % change Reported FX | % change CER |
Retail/wholesale | (36) | 359 | (110) | (104) |
Licensing | 62 | 59 | 6 | 9 |
Adjusted operating profit | 26 | 418 | (94) | (88) |
Adjusted operating margin | 1.0% | 14.1% | (1300bps) | (1210bps) |
*For additional detail on adjusting items see note 6 of the Financial Statements
Exchange rates £1= | Spot rates 2 May 2025 | Average effective exchange rates | |
FY25 | FY24 | ||
Euro | 1.17 | 1.19 | 1.16 |
US Dollar | 1.33 | 1.28 | 1.26 |
Chinese Renminbi | 9.65 | 9.21 | 9.01 |
Hong Kong Dollar | 10.28 | 9.98 | 9.84 |
South Korean Won | 1,861 | 1,781 | 1,657 |
Japanese Yen | 192 | 194 | 182 |
(Loss)/Profit before tax reconciliation | ||||
Period ended £ million | 52 weeks ended 29 March 2025 | 52 weeks ended 30 March 2024 | % change Reported FX | % change CER |
Adjusted (loss)/profit before tax | (37) | 383 | (110) | (103) |
Adjusting items* | (29) | - | n/a | |
(Loss)/profit before tax | (66) | 383 | (117) | |
*For detail on adjusting items see note 6 of the Financial Statements
Alternative performance measures
Alternative performance measures (APMs) are non-GAAP measures. The Board uses the following APMs to describe the Group's financial performance and for internal budgeting, performance monitoring, management remuneration target setting and external reporting purposes.
APM | Description and purpose | GAAP measure reconciled to |
Constant Exchange Rates (CER) | This measure removes the effect of changes in exchange rates compared to the prior period. The constant exchange rate incorporates both the impact of the movement in exchange rates on the translation of overseas subsidiaries' results and also on foreign currency procurement and sales through the Group's UK supply chain. | Results at reported rates |
Comparable sales | The year-on-year change in sales from stores trading over equivalent time periods and measured at constant foreign exchange rates. It also includes online sales. This measure is used to strip out the impact of permanent store openings and closings, or those closures relating to refurbishments, allowing a comparison of equivalent store performance against the prior period. | Retail Revenue: Period ended 52 weeks 52 weeks YoY% ended 29 ended 30 March March 2025 2024 Comparable (12%) (1%) sales Change in 1% 2% space CER retail (11%) 1% |
FX (2%) (5%) Retail revenue (13%) (4%) | ||
Adjusted Profit | Adjusted profit measures are presented to provide additional consideration of the underlying performance of the Group's ongoing business. These measures remove the impact of those items which should be excluded to provide a consistent and comparable view of performance. | Reported Profit: A reconciliation of reported profit before tax to adjusted profit before tax and the Group's accounting policy for adjusted profit before tax are set out in the financial statements. |
Free Cash Flow | Free cash flow is defined as net cash generated from operating activities less capital expenditure plus cash inflows from disposal of fixed assets and including cash outflows for lease principal payments and other lease related items. | Net cash generated from operating activities: Period ended 52 weeks 52 weeks £m ended ended 29 March 30 March 2025 2024 Net cash generated 429 506 from operating activities Capex (151) (208) Lease principal and (225) (235) related cash flows Proceeds from disposal 12 -of non-current assets Free cash flow 65 63 | ||
Cash Conversion | Cash conversion is defined as free cash flow pre-tax/adjusted (loss)/profit before tax. It provides a measure of the Group's effectiveness in converting its profit into cash. | Net cash generated from operating activities: Period ended 52 weeks £m ended 29 March 2025 | 52 weeks ended 30 March 2024 | |
Free cash flow 65 | 63 | |||
Tax paid 43 | 139 | |||
Free cash flow 108 | 202 | |||
before tax | ||||
Adjusted (37) | 383 | |||
(loss)/profit | ||||
before tax | ||||
Cash conversion n/a | 53% | |||
Net Debt | Net debt is defined as the lease liabilities recognised on the balance sheet plus | Cash net of overdrafts: Period ended £m Cash net of overdrafts Lease liabilities Borrowings Net debt | As at 29 March 2025 708 (1,081) (738) (1,111) | As at 30 March 2024 |
borrowings less cash net of overdrafts. | ||||
362 | ||||
(1,188) | ||||
(299) | ||||
(1,125) | ||||
Adjusted | Adjusted EBITDA* is defined as | Period ended £m Operating (loss)/profit Adjusting operating items Amortisation and impairment of intangible assets Depreciation and impairment of property, plant and equipment Depreciation and impairment of right-of-use assets Adjusted EBITDA | 52 weeks ended 29 March 2025 (3) 29 58 122 277 483 | 52 weeks ended 30 March 2024 418 -42 108 243 811 |
EBITDA | operating (loss)/profit, excluding | |||
adjusting operating items, depreciation | ||||
and impairment of property, plant and | ||||
equipment, depreciation and impairment | ||||
of right of use assets and amortisation | ||||
and impairment of intangible assets. Any | ||||
depreciation, amortisation or impairment | ||||
included in adjusting operating items are | ||||
not double counted. Adjusted EBITDA is | ||||
shown for the calculation of Net | ||||
Debt/EBITDA for our leverage ratios. | ||||
*Our definition of adjusted EBITDA has been updated | ||||
to reflect the exclusion of the impairment of right-of- | ||||
use and other non-current assets where this income | ||||
statement impact is included within adjusted | ||||
operating (loss)/profit. Prior to this change, adjusted | ||||
EBITDA was £797m for the 52 weeks ended 30 | ||||
March 2024. | ||||
Group Income Statement
Note
52 weeks to
29 March
2025
£m
52 weeks to
30 March
2024
£m
Revenue Cost of sales | 4 | 2,461 (923) | 2,968 (959) |
Gross profit | 1,538 | 2,009 | |
Operating expenses Other operating income | (1,564) 23 | (1,604) | |
13 | |||
Net operating expenses | (1,541) | (1,591) | |
Operating (loss)/profit Financing | (3) | 418 | |
Finance income Finance expense | 25 (88) | 31 (66) | |
Net finance expense | 7 | (63) | (35) |
(Loss)/profit before taxation Taxation | 5 8 | (66) (9) | 383 (112) |
(Loss)/profit for the year | (75) | 271 | |
Attributable to: Owners of the Company Non-controlling interest | (75) - | 270 1 | |
(Loss)/profit for the year | (75) | 271 | |
(Loss)/earnings per share Basic Diluted | 9 9 | (20.9)p (20.9)p | 74.1p 73.9p |
£m | £m | ||
Reconciliation of adjusted profit before taxation: (Loss)/profit before taxation Adjusting operating items: Net operating expenses | 6 | (66) 29 | 383 - |
Adjusted (loss)/profit before taxation - non-GAAP measure | (37) | 383 | |
Adjusted (loss)/earnings per share - non-GAAP measure Basic Diluted | 9 9 | (14.8)p (14.8)p | 74.1p 73.9p |
Dividends per share Interim Proposed final (not recognised as a liability at 29 March/30 March) | 10 10 | - - | 18.3p 42.7p |
Group Statement of Comprehensive Income
Note
52 weeks to
29 March
2025
£m
52 weeks to
30 March
2024
£m
(Loss)/profit for the year Other comprehensive (loss)/income1: Cash flow hedges | 20 | (75) 1 | 271 (3) |
Foreign currency translation differences | 20 | (25) | (34) |
Tax on other comprehensive income | - | 1 | |
Other comprehensive loss for the year, net of tax | (24) | (36) | |
Total comprehensive (loss)/income for the year | (99) | 235 | |
Total comprehensive (loss)/income attributable to: Owners of the Company | (99) | 234 | |
Non-controlling interest | - | 1 | |
(99) | 235 | ||
1. All items included in other comprehensive income may subsequently be reclassified to profit and loss in a future period.
Group Balance Sheet
Note
As at 29 March
2025
£m
As at 30 March
2024
£m
ASSETS | 229 398 867 233 48 | 267 406 1,013 208 52 | |
Non-current assets | |||
Intangible assets | 11 | ||
Property, plant and equipment | 12 | ||
Right-of-use assets | 13 | ||
Deferred tax assets | |||
Trade and other receivables | 14 | ||
1,775 | 1,946 | ||
Current assets | 424 309 11 95 813 - | 507 340 2 122 441 12 | |
Inventories | 15 | ||
Trade and other receivables | 14 | ||
Derivative financial assets | |||
Income tax receivables | |||
Cash and cash equivalents | 16 | ||
Assets held for sale | 12 | ||
1,652 | 1,424 | ||
Total assets | 3,427 | 3,370 | |
LIABILITIES | (54) (866) (438) (1) (3) (33) | (63) (959) (299) (1) - (37) | |
Non-current liabilities | |||
Trade and other payables | 17 | ||
Lease liabilities | 18 | ||
Borrowings | 19 | ||
Deferred tax liabilities | |||
Derivative financial liabilities | |||
Provisions for other liabilities and charges | |||
(1,395) | (1,359) | ||
Current liabilities | (405) (105) (215) (300) (1) (58) (27) | (439) (79) (229) -(4) (86) (20) | |
Trade and other payables | 17 | ||
Bank overdrafts | 19 | ||
Lease liabilities | 18 | ||
Borrowings | 19 | ||
Derivative financial liabilities | |||
Income tax liabilities | |||
Provisions for other liabilities and charges | |||
(1,111) | (857) | ||
Total liabilities | (2,506) | (2,216) | |
Net assets | 921 | 1,154 | |
EQUITY | -231 41 3 173 466 | -231 41 2 198 675 | |
Capital and reserves attributable to owners of the Company | |||
Ordinary share capital | 20 | ||
Share premium account | |||
Capital reserve | 20 | ||
Hedging reserve | 20 | ||
Foreign currency translation reserve | 20 | ||
Retained earnings | |||
Equity attributable to owners of the Company Non-controlling interest in equity | 914 7 | 1,147 7 | |
Total equity | 921 | 1,154 | |
Group Statement of Changes in Equity
Attributable to owners of the Company
Note
Ordinary share capital
£m
Share premium account
£m
Other reserves
£m
Retained earnings
£m
Total
£m
Non-controlling interest
£m
Total equity
£m
Balance as at 1 April 2023 - 230 277 1,026 1,533 6 1,539
Profit for the year - - - 270 270 1 271
Other comprehensive income:
Cash flow hedges 20 - - (3) - (3) - (3)
Foreign currency translation differences 20 - - (34) - (34) - (34) Tax on other comprehensive income - - 1 - 1 - 1
Total comprehensive income for the year - - (36) 270 234 1 235
Transactions with owners:
Employee share incentive schemes
Equity share awards - - - 16 16 - 16
Tax on share awards - - - (2) (2) - (2)
Exercise of share options - 1 - - 1 - 1
Purchase of own shares
Share buyback - - - (402) (402) - (402)
Dividends paid in the year - - - (233) (233) - (233)
Balance as at 30 March 2024 - 231 241 675 1,147 7 1,154
Loss for the year - - - (75) (75) - (75) Other comprehensive income:
Cash flow hedges 20 - - 1 - 1 - 1
Foreign currency translation differences 20 - - (25) - (25) - (25)
Total comprehensive loss for the year - - (24) (75) (99) - (99) Transactions with owners:
Employee share incentive schemes
Equity share awards - - - 18 18 - 18
Dividends paid in the year - - - (152) (152) - (152)
Balance as at 29 March 2025 - 231 217 466 914 7 921
Group Statement of Cash Flows
Note
52 weeks to
29 March
2025
£m
52 weeks to
30 March
2024
£m
Cash flows from operating activities | (66) 54 112 247 4 10 32 -(15) (8) 18 63 80 36 (41) | 383 42 103 234 -5 9 3 (4) 5 16 35 (57) (32) (77) | |
(Loss)/profit before tax | |||
Adjustments to reconcile profit before tax to net cash flows: | |||
Amortisation of intangible assets | 11 | ||
Depreciation of property, plant and equipment | 12 | ||
Depreciation of right-of-use assets | 13 | ||
Impairment charge of intangible assets | 11 | ||
Impairment charge of property, plant and equipment | 12 | ||
Impairment charge of right-of-use assets | 13 | ||
Loss on disposal of intangible assets | |||
Gain on modification of right-of-use assets | |||
(Gain)/loss on derivative instruments | |||
Charge in respect of employee share incentive schemes | |||
Net finance expense | |||
Working capital changes: | |||
Decrease/(increase) in inventories | |||
Decrease/(increase) in receivables | |||
Decrease in payables and provisions | |||
Cash generated from operating activities Interest received Interest paid Taxation paid | 526 21 (75) (43) | 665 32 (52) (139) | |
Net cash generated from operating activities | 429 (122) (29) 12 1 11 - | 506 (158) (50) -(4) - (19) | |
Cash flows from investing activities | |||
Purchase of property, plant and equipment | |||
Purchase of intangible assets | |||
Proceeds from sale of property, plant and equipment | |||
Initial direct costs of right-of-use assets | |||
Proceeds from termination of lease | |||
Payment in respect of acquisition of subsidiary | |||
Net cash outflow from investing activities | (127) (152) 439 (2) (232) (5) - - - | (231) (233) - -(231) -1 (400) (2) | |
Cash flows from financing activities | |||
Dividends paid in the year | 10 | ||
Proceeds from borrowings | 19 | ||
Payment of deferred consideration for acquisition of non-controlling interest | 17 | ||
Payment of lease principal | 18 | ||
Payment on termination of lease | 18 | ||
Issue of ordinary share capital | |||
Purchase of own shares through share buyback | 20 | ||
Purchase of own shares through share buyback - stamp duty and fees | 20 | ||
Net cash inflow/(outflow) from financing activities | 48 | (865) | |
Net increase/(decrease) in cash net of overdrafts Effect of exchange rate changes Cash net of overdrafts at beginning of year | 350 (4) 362 | (590) (9) 961 | |
Cash net of overdrafts | 708 | 362 | |
Note | 52 weeks to 29 March 2025 £m | 52 weeks to 30 March 2024 £m | |
Cash and cash equivalents | 16 | 813 | 441 |
Bank overdrafts | 19 | (105) | (79) |
Cash net of overdrafts | 708 | 362 | |
1. Basis of preparation
The financial information contained within this report has been prepared in accordance with international accounting standards in conformity with the requirements of the Companies Act 2006 and International Financial Reporting Standards adopted pursuant to Regulation (EC) No. 1606/2002 as it applies in the European Union, IFRS Interpretations Committee (IFRS IC) interpretations and parts of the Companies Act 2006 applicable to companies reporting under IFRS. This financial information does not constitute the Burberry Group's (the Group) Annual Report and Accounts within the meaning of Section 435 of the Companies Act 2006.
Statutory accounts for the 52 weeks to 30 March 2024 have been filed with the Registrar of Companies and those for 2025 will be delivered in due course. The reports of the auditors on those statutory accounts for the 52 weeks to 30 March 2024 and 52 weeks to 29 March 2025 were unqualified, did not contain an emphasis of matter paragraph and did not contain a statement under either section 400(2) or section 498(3) of the Companies Act 2006.
The consolidated financial statements are presented in £m. Financial ratios are calculated using unrounded numbers.
Going concern
In considering the appropriateness of adopting the going concern basis in preparing the financial statements, the Directors have assessed the potential cash generation of the Group. This assessment covers the period of a minimum of 12 months from the date of signing the financial statements. The Directors have also considered the forecast for the period up to 26 September 2026, for indicators that the going concern basis of preparation is not appropriate.
The scenarios considered by the Directors include a severe but plausible downside scenario reflecting the Group's base plan adjusted for severe but plausible impacts from the Group's principal risks. This central planning scenario is informed by a comprehensive review of the macroeconomic scenarios using third-party projections of macroeconomic data for the luxury fashion industry which reflects the current uncertain outlook. The Group's central planning scenario reflects a balanced
projection with a continued focus to stabilise the business and position the brand for profitable sustainable growth.
As a sensitivity, this central planning scenario has been stressed to reflect the aggregation of severe impacts arising linked to our principal risks which in total represents a 20% downgrade to revenues in the 18-month period to 26 September 2026 as well as the associated consequences for EBITDA and cash. Management considers that this represents a severe but plausible downside scenario appropriate for assessing going concern.
The severe but plausible downside modelled the following risks occurring simultaneously:
A more severe and prolonged reduction in the GDP growth assumptions across the markets in which we operate combined with a reduction to our global consumer demand arising from a change in consumer preference compared to our central planning scenario
An increase in geopolitical tension which leads to incremental unmitigated tariff risks compared to the central planning scenario
A significant reputational incident such as negative sentiment propagated through social media
The impact of a business interruption event, resulting in a two-week interruption arising from the supply chain impact, and interruption to one of our channels
The occurrence of a one-time physical risk relating to climate change in FY 2026/27 and the materialisation of a severe but plausible ongoing market risk relating to climate change in line with a scenario reflecting a 2°C global temperature increase compared to pre-industrial levels
The payment of a settlement arising from a regulatory or compliance-related matter
The impact of not delivering the anticipated cost savings from the Burberry Forward transformation programme
A short-term impact of a 10% weakening in a key non-sterling currency for the Group before it is recovered through price adjustment
Further mitigating actions within management control would be taken under each scenario, including working capital reduction measures and limiting capital expenditure and/or variable marketing costs.
The Directors have also considered the Group's current liquidity and available facilities. As at 29 March 2025, the Group Balance Sheet reflects cash net of overdrafts of £708 million. In addition, the Group has access to a £300 million revolving credit facility (£300 million RCF) which matures in November 2027, and a £75 million revolving credit facility (£75 million RCF) which matures in March 2027 which are currently undrawn. The £300 million sustainability bond matures within the going concern period on 21 September 2025. The Group's central planning scenario includes the repayment of the £300 million sustainability bond with existing cash and drawing the £75 million RCF. The going concern assessment does not rely upon either the £75 million or £300 million RCFs and instead assumes mitigating actions within management control would be taken.
Details of cash, overdrafts, borrowings and facilities are set out in notes 16 and 19 respectively of these financial statements.
In all the scenarios assessed, taking into account liquidity and available resources, the Group is able to maintain sufficient liquidity to continue trading throughout the going concern period up to 26 September 2026. On the basis of the assessment performed, the Directors consider it is appropriate to continue to adopt the going concern basis in preparing the consolidated financial statements for the 52 weeks ended 29 March 2025.
1. Basis of preparation continued
New standards, amendments and interpretations adopted in the period
A number of amendments to standards are effective for the 52 weeks to 29 March 2025, but they do not have a material impact on the financial statements of the Group.
Standards not yet adopted
Certain new accounting standards and amendments to standards have been published that are not yet mandatory for the 52 weeks to 29 March 2025 and have not been early adopted by the Group. The Group is assessing the impact of these standards on the financial statements and the results will be communicated in future periods, including the impact from Classification and Measurement of Financial Instruments - Amendments to IFRS 9 and IFRS 7, which is effective for the reporting period beginning 29 March 2026, and may have an impact on the Group. The Group does expect a material impact from IFRS 18 Presentation and Disclosure in Financial Statements in the Group's primary financial statements. IFRS 18, which is effective for the reporting period beginning on 28 March 2027, subject to UK endorsement, replaces IAS 1 Presentation of Financial Statements.
Key sources of estimation uncertainty
Preparation of the consolidated financial statements in conformity with IFRS requires that management make certain estimates and assumptions that affect the measurement of reported revenues, expenses, assets and liabilities and the disclosure of contingent liabilities.
If in the future such estimates and assumptions, which are based on management's best estimates at the date of the financial statements, deviate from actual circumstances, the original estimates and assumptions will be updated as appropriate in the period in which the circumstances change.
Estimates are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. The key areas where the estimates and assumptions applied have a significant risk of causing a material adjustment to the carrying value of assets and liabilities within the next financial year are discussed below.
Impairment, or reversals of impairment, of property, plant and equipment and right-of-use assets
Property, plant and equipment and right-of-use assets are reviewed for impairment or reversals of impairment if events or changes in circumstances indicate that the carrying amount may not be recoverable. When a review for impairment is conducted, the recoverable amount of an asset or a cash generating unit is determined based on value-in-use calculations prepared using management's best estimates and assumptions at the time. Refer to notes 12 and 13 for further details of retail property, plant and equipment, right-of-use assets and impairment reviews carried out in the period and for sensitivities relating to this key source of estimation uncertainty.
Inventory provisioning
The Group purchases, manufactures and sells luxury goods and is subject to changing consumer demands and fashion trends. The recoverability of the cost of inventories is assessed every reporting period, by considering the expected net realisable value of inventory compared to its carrying value. Where the net realisable value is lower than the carrying value, a provision is recorded. When calculating inventory provisions, management considers the nature and condition of the inventory, as well as applying assumptions in respect of anticipated saleability of finished goods and future usage of raw materials. Refer to note 15 for further details of the carrying value of inventory and inventory provisions and for sensitivities relating to this key source of estimation uncertainty.
Uncertain tax positions
In common with many multinational companies, the Group faces tax audits in jurisdictions around the world in relation to intra-group transactions between associated entities within the Group. These tax audits are often subject to intergovernment negotiations. The matters under discussion are often complex and can take many years to resolve.
Tax liabilities are recorded based on management's estimate of either the most likely amount or the expected value amount depending on which method is expected to better reflect the resolution of the uncertainty. Given the inherent uncertainty in assessing tax outcomes, the Group could, in future periods, experience adjustments to these uncertain tax positions that have a material positive or negative effect on the Group's results for a particular period.
Refer to note 8 for further details of management estimates surrounding the outcome of all matters under dispute or negotiation between governments in relation to current tax liabilities recognised at 29 March 2025, and for sensitivities relating to this key source of estimation uncertainty.
Basis of preparation continued
Key judgements in applying the Group's accounting policies
Judgements are those decisions made when applying accounting policies which have a significant impact on the amounts recognised in the Group financial statements. Key judgements that have a significant impact on the amounts recognised in the Group financial statements for the 52 weeks to 29 March 2025 and the 52 weeks to 30 March 2024 are as follows:
Where the Group is a lessee, judgement is required in determining the lease term at initial recognition, and throughout the lease term, where extension or termination options exist. In such instances, all facts and circumstances that may create an economic incentive to exercise an extension option, or not exercise a termination option, have been considered to determine the lease term. Considerations include, but are not limited to, the period assessed by management when approving initial investment, together with costs associated with any termination options or extension options. Extension periods (or periods after termination options) are only included in the lease term if the lease is reasonably certain to be extended (or not terminated). Where the lease term has been extended by assuming an extension option will be recognised, this will result in the initial right-of-use assets and lease liabilities at inception of the lease being greater than if the option was not assumed to be exercised. Likewise, assuming a break option will be exercised will reduce the initial right-of-use assets and lease liabilities.
Refer to note 18 for further details surrounding the judgements regarding the impact of breaks and options on lease liabilities.
Translation of the results of overseas businesses
The results of overseas subsidiaries are translated into the Group's presentation currency of sterling each month at the average exchange rate for the month, weighted according to the phasing of the Group's trading results. The average exchange rate is used, as it is considered to approximate the actual exchange rates on the date of the transactions. The assets and liabilities of such undertakings are translated at the closing rates. Differences arising on the retranslation of the opening net investment in subsidiary companies, and on the translation of their results, are recognised in other comprehensive income.
Goodwill and fair value adjustments arising on the acquisition of a foreign operation are treated as assets and liabilities of the foreign operation and translated at the closing rate.
The principal exchange rates used were as follows:
Average rate Closing rate
52 weeks to
29 March
2025
52 weeks to
30 March
2024
As at 29 March
2025
As at 30 March
2024
Euro
1.19
1.16
1.20
1.17
US Dollar
1.28
1.26
1.29
1.26
Chinese Yuan Renminbi
9.21
9.01
9.40
9.13
Hong Kong Dollar
9.98
9.84
10.07
9.89
South Korean Won
1,781
1,657
1,903
1,702
Japanese Yen
194
182
194
191
Adjusted profit before taxation
In order to provide additional understanding of the underlying performance of the Group's ongoing business, the Group's results include a presentation of adjusted operating profit and adjusted profit before taxation (adjusted PBT). Adjusted PBT is defined as profit before taxation and before adjusting items. Adjusting items are those items which, in the opinion of the Directors, should be excluded in order to provide a consistent and comparable view of the performance of the Group's ongoing business. Generally, this will include those items that are largely one-off and/or material in nature, such as restructuring charges, as well as income or expenses relating to acquisitions or disposals of businesses or other transactions of a similar nature, including the impact of changes in fair value of expected future payments or receipts relating to these transactions. Adjusting items are identified and presented on a consistent basis each year and a reconciliation of adjusted PBT to profit before taxation is included in the financial statements. Adjusting items and their related tax impacts, as well as adjusting taxation items, are added back to/deducted from profit attributable to owners of the Company to arrive at adjusted earnings per share. Refer to note 6 for further details on adjusting items and note 9 for details on adjusted earnings per share.
Segmental analysis
The Chief Operating Decision Maker has been identified as the Board of Directors. The Board reviews the Group's internal reporting in order to assess performance and allocate resources. Management has determined the operating segments based on the reports used by the Board. The Board considers the Group's business through its two channels to market, being retail/wholesale and licensing.
Retail/wholesale revenues are generated by the sale of luxury goods through Burberry full price stores, concessions, outlets and digital commerce as well as Burberry franchisees, prestige department stores globally and multi-brand speciality accounts. The flow of global product between retail and wholesale channels and across our regions is monitored and optimised at a corporate level and implemented via the Group's inventory hubs and principal distribution centres situated in Europe,
the USA, Mainland China and Hong Kong S.A.R., China.
Licensing revenues are generated through the receipt of royalties from global licensees of beauty products and eyewear and from licences relating to the use of non-Burberry trademarks in Japan.
The Board assesses channel performance based on a measure of adjusted operating profit. This measurement basis excludes the effects of adjusting items. The measure of earnings for each operating segment that is reviewed by the Board includes an allocation of corporate and central costs. Interest income and charges are not included in the result for each operating segment that is reviewed by the Board.
Retail/Wholesale Licensing Total
52 weeks to
29 March
2025
£m
52 weeks to
30 March
2024
£m
52 weeks to
29 March
2025
£m
52 weeks to
30 March
2024
£m
52 weeks to
29 March
2025
£m
52 weeks to
30 March
2024
£m
Retail
2,076
2,400
-
-
2,076
2,400
Wholesale
319
506
-
-
319
506
Licensing
-
-
67
63
67
63
Total segment revenue
2,395
2,906
67
63
2,462
2,969
Inter-segment revenue1
-
-
(1)
(1)
(1)
(1)
Revenue from external customers
2,395
2,906
66
62
2,461
2,968
Depreciation and amortisation2
(413)
(4)
(10)
(32)
(44)
(18)
(36)
(379) -
(5)
(9)
(39)
(16)
359
-
-
-
-
-
-62
-
-
-
-
-
-59
(413)
(4)
(10)
(32)
(44)
(18)
26
(379) -
(5)
(9)
(39)
(16)
418
Impairment charge of intangible assets
Impairment charge of property,
plant and equipment
Impairment charge of
right-of-use assets3
Net movement in inventory provisions
Other non-cash items:
Share-based payments
Adjusted operating (loss)/profit
Adjusting items4
(29)
-
Operating (loss)/profit
(3)
418
Finance income
25
31
Finance expense
(88)
(66)
(Loss)/profit before taxation
(66)
383
Inter-segment transfers or transactions are entered into under the normal commercial terms and conditions that would be available to unrelated third parties.
Depreciation of right-of-use assets for the 52 weeks to 29 March 2025 is presented including a charge of £1 million arising as a result of the Group's restructuring programme (last year: £nil), which is presented as an adjusting item (refer to note 6).
Impairment charge of right-of-use assets for the 52 weeks to 29 March 2025 is presented including £1 million in relation to non-retail right-of-use assets arising as a result of the Group's restructuring programme (last year: £nil), which is presented as an adjusting item (refer to note 6).
Adjusting items relate to the Retail/Wholesale segment. Refer to note 6 for details of adjusting items.
Retail/Wholesale Licensing Total
52 weeks to
29 March
2025
£m
52 weeks to
30 March
2024
£m
52 weeks to
29 March
2025
£m
52 weeks to
30 March
2024
£m
52 weeks to
29 March
2025
£m
52 weeks to
30 March
2024
£m
Additions to non-current assets
217
399
-
-
217
399
Total segment assets
2,164
2,474
8
6
2,172
2,480
Goodwill
114
119
Cash and cash equivalents
813
441
Taxation
328
330
Total assets per Balance Sheet
3,427
3,370
4. Segmental analysis continued
Additional revenue analysis
All revenue is derived from contracts with customers. The Group derives retail and wholesale revenue from contracts with customers from the transfer of goods and related services at a point in time. Licensing revenue is derived over the period the licence agreement gives the customer access to the Group's trademarks.
Revenue by product
52 weeks to
29 March
2025
£m
52 weeks to
30 March
2024
£m
Accessories
841
1,055
Womenswear
718
860
Menswear
732
842
Childrenswear and other
104
149
Retail/Wholesale
2,395
2,906
Licensing
66
62
Total
2,461
2,968
Revenue by destination
52 weeks to
29 March
2025
£m
52 weeks to
30 March
2024
£m
Asia Pacific
1,043
1,286
EMEIA1
842
1,017
Americas
510
603
Retail/Wholesale
2,395
2,906
Licensing
66
62
Total
2,461
2,968
1. EMEIA comprises Europe, Middle East, India and Africa.
Entity-wide disclosures
Revenue derived from external customers in the UK totalled £208 million for the 52 weeks to 29 March 2025 (last year: £295 million).
Revenue derived from external customers in foreign countries totalled £2,253 million for the 52 weeks to 29 March 2025 (last year: £2,673 million). This amount includes £447 million of external revenues derived from customers in the USA (last year:
£531 million) and £534 million of external revenues derived from customers in Mainland China (last year: £648 million).
The total of non-current assets, other than financial instruments, and deferred tax assets located in the UK is £458 million (last year: £523 million). The remaining £1,041 million of non-current assets are located in other countries (last year: £1,168 million), with £330 million located in the USA (last year: £352 million) and £173 million located in Mainland China (last year:
£200 million).
Profit before taxation
Note
52 weeks to
29 March
2025
£m
52 weeks to
30 March
2024
£m
Profit before taxation is stated after charging/(crediting):
2
93
17
1
225
21
1
53
44 -
(15)
10
32
4
576
92
8
9
16
(21)
2
2
84
17
1
214
19
1
41
39
3
(4)
5
9 -572
111
18
12
20
(7)
4
Depreciation of property, plant and equipment
Within cost of sales
Within selling and distribution costs
Within administrative expenses
Depreciation of right-of-use assets
Within cost of sales
Within selling and distribution costs1
Within administrative expenses
Amortisation of intangible assets
Within selling and distribution costs
Within administrative expenses
Net movement in inventory provisions within cost of sales
15
Loss on disposal of intangible assets
Gain on modification of right-of-use assets
Impairment charge of property, plant and equipment
12
Impairment charge of right-of-use assets2
13
Impairment charge of intangible assets
11
Employee costs3
Other lease expense
Property lease variable lease expense
18
Property lease in holdover expense
18
Non-property short-term lease expense
18
Net exchange loss on revaluation of monetary assets and liabilities
Net gain on derivatives - fair value through profit and loss
Receivables impairment charge
Depreciation of right-of-use assets for the 52 weeks to 29 March 2025 is presented including a charge of £1 million arising as a result of the Group's restructuring programme (last year: £nil), which is presented as an adjusting item (refer to note 6).
Impairment charge of right-of-use assets for the 52 weeks to 29 March 2025 is presented including £1 million in relation to non-retail right-of-use assets arising as a result of the Group's restructuring programme (last year: £nil), which is presented as an adjusting item (refer to note 6).
Employee costs for the 52 weeks to 29 March 2025 are presented including a charge of £16 million arising as a result of the Group's restructuring programme (last year: £nil), which is presented as an adjusting item (refer to note 6).
Adjusting items
52 weeks to
29 March
2025
£m
52 weeks to
30 March
2024
£m
Total adjusting operating items
29
-
Tax on adjusting items
(7)
-
Total adjusting items (post-tax)
22
-
Restructuring costs
During the 52 weeks to 29 March 2025, restructuring costs of £29 million (last year: £nil) were incurred, arising primarily as a result of the Burberry Forward transformation programme initiated during the period and the majority of which is expected to conclude by the end of FY 2025/26. The associated costs, which are recorded within operating expenses, and are largely cash costs, principally related to redundancies of £16 million, consultancy costs of £9 million and other restructuring related costs of £4 million. These costs are presented as an adjusting item, in accordance with the Group's accounting policy, as the anticipated cost of the restructuring programme is considered material and discrete in nature. A related tax credit of £7 million (last year: £nil) has also been recognised in the current year. The cumulative costs, which are largely cash costs, related to the Burberry Forward transformation programme are expected to total £80 million.
Financing
Note
52 weeks to
29 March
2025
£m
52 weeks to
30 March
2024
£m
Finance income - amortised cost
Finance income - fair value through profit and loss
12
13
9
22
Finance income
25
31
Finance expense on lease liabilities 18
Finance expense on overdrafts Interest expense on borrowings Other finance expense
Bank charges
(49)
(7)
(25)
(5)
(2)
(43)
(7)
(4)
(11)
(1)
Finance expense
(88)
(66)
Net finance expense
(63)
(35)
Taxation
Analysis of charge for the year recognised in the Group Income Statement:
52 weeks to
29 March
2025
£m
52 weeks to
30 March
2024
£m
Current tax UK corporation tax Current tax on income for the 52 weeks to 29 March 2025 at 25% (last year: 25%) Double taxation relief Adjustments in respect of prior years1 | 4 -(7) | 104 (3) 44 |
(3) | 145 | |
Foreign tax Current tax on income for the year Adjustments in respect of prior years1 | 26 15 | 26 (35) |
41 | (9) | |
Total current tax | 38 | 136 |
Deferred tax UK deferred tax Origination and reversal of temporary differences Adjustments in respect of prior years1 | (2) 2 | 5 (1) |
- | 4 | |
Foreign deferred tax Origination and reversal of temporary differences Adjustments in respect of prior years1 | (31) 2 | (28) - |
(29) | (28) | |
Total deferred tax | (29) | (24) |
Total tax charge on profit | 9 | 112 |
1. Adjustments in respect of prior years relate mainly to adjustments to estimates of prior period tax liabilities and a net increase in provisions for uncertain tax positions (where in some instances the provision also includes offsetting relief in a different jurisdiction) and tax accruals.
Analysis of charge for the year recognised in other comprehensive income and directly in equity:
52 weeks to
29 March
2025
£m
52 weeks to
30 March
2024
£m
Current tax Recognised in other comprehensive income: Current tax credit on exchange differences on loans (foreign currency translation reserve) | - | (1) |
Total current tax recognised in other comprehensive income | - | (1) |
Deferred tax Recognised in equity: Deferred tax charge on share options (retained earnings) | - | 2 |
Total deferred tax recognised directly in equity | - | 2 |
8. Taxation continued
The tax rate applicable on profit varied from the standard rate of corporation tax in the UK due to the following factors:
52 weeks to
29 March
2025
£m
52 weeks to
30 March
2024
£m
(Loss)/profit before taxation | (66) | 383 |
Tax at 25% (last year: 25%) on profit before taxation | (16) | 97 |
Rate adjustments relating to overseas profits | (1) | - |
Permanent differences | 8 | 3 |
Current year tax losses not recognised | 6 | 3 |
Prior year temporary differences and tax losses recognised | - | 1 |
Adjustments in respect of prior years | 12 | 8 |
Total taxation charge | 9 | 112 |
Total taxation recognised in the Group Income Statement arises on the following items:
Note
52 weeks to
29 March
2025
£m
52 weeks to
30 March
2024
£m
Tax on adjusted (loss)/profit before taxation Tax on adjusting items 6 | 16 (7) | 112 - |
Total taxation charge | 9 | 112 |
Factors affecting future tax charges
Uncertain tax positions
The Group operates in numerous tax jurisdictions around the world and is subject to factors that may affect future tax charges including transfer pricing, tax rate changes, tax legislation changes, tax authority interpretation, expiry of statutes of limitation, tax litigation, and resolution of tax audits and disputes.
At any given time, the Group has open years outstanding in various countries and is involved in tax audits and disputes, some of which may take several years to resolve. Provisions are based on best estimates and management's judgements concerning the likely ultimate outcome of any audit or dispute. Management considers the specific circumstances of each tax position and takes external advice, where appropriate, to assess the range of potential outcomes and estimate additional tax that may be due.
At 29 March 2025 the Group recognised provisions of £107 million in respect of uncertain tax positions (last year: £91 million), being provisions of £128 million net of expected reimbursements of £21 million (last year: £131 million net of expected reimbursements of £40 million). The majority of these provisions relate to the tax impact of intra-group transactions between the UK and the various jurisdictions in which the Group operates, as would be expected for a group operating internationally.
The Group believes that it has made adequate provision in respect of additional tax liabilities that may arise from open years, tax audits and disputes. However, the actual liability for any particular issue may be higher or lower than the amount provided, resulting in a negative or positive effect on the tax charge in any given year. A reduction in the tax charge may also arise for other reasons such as an expiry of the relevant statute of limitations. Depending on the final outcome of tax audits which are currently in progress, statute of limitations expiry, and other factors, an impact on the tax charge could arise. The tax impact of intra-group transactions is a complex area and resolution of matters can take many years. Given the inherent uncertainty, it is difficult to predict the timing of when these matters will be resolved and the quantum of the ultimate resolution.
Management estimate that the outcome across all matters under dispute or in negotiation between governments could be in the range of a decrease of £38 million, to an increase of £83 million, in the uncertain tax position over the next 12 months.
Taxation continued
Factors affecting future tax charges continued
Legislative changes
The OECD Pillar Two GloBE Rules introduce a global minimum corporate tax rate of 15% applicable to multinational enterprise groups with global revenue over €750 million. All participating OECD members are required to incorporate these rules into national legislation. The Group is subject to the Pillar Two Model Rules from FY 2024/25 but does not meet the threshold for application of the Pillar One transfer pricing rules. The Group applies the temporary exception from the accounting requirements for deferred taxes in IAS 12. Accordingly, the Group neither recognises nor discloses information about deferred tax assets and liabilities related to Pillar Two income taxes.
UK legislation in relation to Pillar Two was substantively enacted on 20 June 2023 and applies to the Group for the reporting period beginning 31 March 2024. The Group has performed an analysis of the potential exposure to Pillar Two income taxes. The analysis of the potential exposure to Pillar Two income taxes is based on the most recently submitted Country by Country Reporting available for the constituent entities in the Group (for the 52 weeks to 29 March 2025). Based on the analysis, the transitional safe harbour relief should apply in respect of most jurisdictions in which the Group operates. Although there are a limited number of jurisdictions where the transitional safe harbour relief may not apply, the Group does not expect a material exposure to Pillar Two income taxes in those jurisdictions.
Earnings per share
The calculation of basic earnings per share is based on profit or loss attributable to owners of the Company for the year divided by the weighted average number of ordinary shares in issue during the year. Basic and diluted earnings per share based on adjusted profit before taxation are also disclosed to indicate the underlying profitability of the Group.
52 weeks to
29 March
2025
£m
52 weeks to
30 March
2024
£m
Attributable (loss)/profit for the year before adjusting items1 Effect of adjusting items (after taxation) 1
(53)
(22)
270 -
Attributable (loss)/profit for the year
(75)
270
1. Refer to note 6 for details of adjusting items.
The weighted average number of ordinary shares represents the weighted average number of Burberry Group plc ordinary shares in issue throughout the year, excluding ordinary shares held in the Group's ESOP trusts and treasury shares held by the Company or its subsidiaries.
Diluted earnings per share is based on the weighted average number of ordinary shares in issue during the year. In addition, account is taken of any options and awards made under the employee share incentive schemes, which will have a dilutive effect when exercised.
52 weeks to
29 March
2025
Millions
52 weeks to
30 March
2024
Millions
Weighted average number of ordinary shares in issue during the year
Dilutive effect of the employee share incentive schemes1
357.5
0.9
365.0
1.2
Diluted weighted average number of ordinary shares in issue during the year1
358.4
366.2
52 weeks to
29 March
2025
Pence
52 weeks to
30 March
2024
Pence
(Loss)/earnings per share Basic
(20.9)
74.1
Diluted1
(20.9)
73.9
Adjusted (loss)/earnings per share Basic
(14.8)
74.1
Diluted1
(14.8)
73.9
1. As the Group incurred an attributable loss for the 52 weeks to 29 March 2025, the effect of employee share incentive schemes was antidilutive and therefore not included in the calculation of diluted loss per share for the period.
Dividends paid to owners of the Company
52 weeks to
29 March
2025
£m
52 weeks to
30 March
2024
£m
Prior year final dividend paid 42.7p per share (last year: 44.5p)
Interim dividend paid £nil per share (last year: 18.3p)
152
-
167
66
Total
152
233
The Directors have elected not to declare an interim or final dividend in respect of the 52 weeks to 29 March 2025 (last year: 42.7p).
Intangible assets
Cost
Goodwill
£m
Trademarks, licences and other
intangible assets
£m
Computer software
£m
Intangible assets in the course of construction
£m
Total
£m
As at 1 April 2023 115 14 248 69 446
Effect of foreign exchange rate changes (6) - (2) - (8)
Additions - 1 8 44 53
Business combination 16 1 - - 17
Disposals - - (5) (22) (27) Reclassifications from assets in the course of construction - - 30 (30) -As at 30 March 2024 125 16 279 61 481
Effect of foreign exchange rate changes (5) - (1) - (6)
Additions - - 2 22 24
Disposals - (1) (28) - (29) Reclassifications from assets in the course of construction - - 61 (61) -As at 29 March 2025 120 15 313 22 470
Accumulated amortisation and impairment
As at 1 April 2023 6 8 165 19 198
Effect of foreign exchange rate changes - - (2) - (2)
Charge for the year - 1 41 - 42
Disposals - - (5) (19) (24)
As at 30 March 2024 6 9 199 - 214
Effect of foreign exchange rate changes - - (2) - (2)
Charge for the year - 1 53 - 54
Disposals - (1) (28) - (29)
Impairment charge on assets - - 4 - 4
As at 29 March 2025 6 9 226 - 241
Net book value
As at 29 March 2025 114 6 87 22 229
As at 30 March 2024 119 7 80 61 267
Intangible assets continued
Impairment testing of goodwill
The carrying value of the goodwill allocated to cash generating units:
As at 29 March
2025
£m
As at 30 March
2024
£m
Mainland China
45
46
22
34
13
24
35
14
South Korea
Retail and Wholesale segment1 Other
Total
114
119
1. Goodwill which arose on acquisitions of Burberry Manifattura S.R.L. and Burberry Tecnica S.R.L. has been allocated to the group of cash generating units which make up the Group's Retail and Wholesale operating segment cash generating unit. This reflects the lowest level at which the goodwill is being monitored by management.
The Group tests goodwill for impairment annually or when there is an indication that goodwill might be impaired.
The recoverable amount of all cash generating units has been determined on a value-in-use basis. Value-in-use calculations for each cash generating unit are based on projected pre-tax discounted cash flows together with a discounted terminal value. The cash flows have been discounted at pre-tax rates reflecting the Group's weighted average cost of capital adjusted for country-specific tax rates and risks. Where the cash generating unit has a non-controlling interest which was recognised at a value equal to its proportionate interest in the net identifiable assets of the acquired subsidiary at the acquisition date, the carrying amount of the goodwill has been grossed up, to include the goodwill attributable to the non-controlling interest, for the purpose of impairment testing the goodwill attributable to the cash generating unit. The key assumptions contained in the value-in-use calculations include the future revenues, the operating profit margins achieved and the discount rates applied.
The value-in-use calculations have been prepared using management's cost and revenue projections for the next three years to 1 April 2028 and a longer-term growth rate of 5% to 30 March 2030 (last year: 5% to 31 March 2029). A terminal value has been included in the value-in-use calculation based on the cash flows for the year ending 30 March 2030, incorporating the assumption that growth beyond 30 March 2030 is equivalent to nominal inflation rates, assumed to be 2% (last year: 2% beyond 31 March 2029), which are not significant to the assessment.
The value-in-use estimates indicated that the recoverable amount of the cash generating unit exceeded the carrying value for each of the cash generating units. As a result, no impairment has been recognised in respect of the carrying value of goodwill in the year.
For the material goodwill balances of Mainland China, South Korea and the Retail and Wholesale segment, management has considered the potential impact of reasonably possible changes in assumptions on the recoverable amount of goodwill. The sensitivities include applying a 10% reduction in revenue and gross profit and the associated impact on operating profit margin from management's base cash flow projections, considering the macroeconomic and political uncertainty risk on the Group's retail operations and on the global economy. Under this scenario, the estimated recoverable amount of goodwill in Mainland China, South Korea and the Retail and Wholesale segment still exceeded the carrying value.
The pre-tax discount rates for Mainland China, South Korea and the Retail and Wholesale segment were 12%, 11% and 12% respectively (last year: Mainland China 12%, South Korea 10%, and the Retail and Wholesale segment 11%). No reasonably possible change in these pre-tax discount rates would result in the carrying value exceeding the estimated recoverable amount of goodwill.
The other goodwill balance of £13 million (last year: £14 million) consists of amounts relating to eight cash generating units, none of which have goodwill balances individually exceeding £6 million as at 29 March 2025 (last year: £6 million).
Property, plant and equipment
Cost
Freehold land and buildings
£m
Leasehold improvements
£m
Fixtures, fittings and equipment
£m
Assets in the course of construction
£m
Total
£m
As at 1 April 2023 121 585 366 76 1,148
Effect of foreign exchange rate changes (2) (27) (8) (3) (40)
Additions - 88 32 44 164
Business combination - - 1 - 1
Disposals - (69) (47) - (116) Reclassifications from assets in the course of construction - 54 14 (68) -Reclassifications to assets held for sale (28) - - - (28)
As at 30 March 2024 91 631 358 49 1,129
Effect of foreign exchange rate changes (2) (18) (9) (1) (30)
Additions 2 86 15 20 123
Disposals - (36) (23) - (59) Reclassifications from assets in the course of construction - 26 21 (47) -As at 29 March 2025 91 689 362 21 1,163
Accumulated depreciation and impairment
As at 1 April 2023 62 407 303 - 772
Effect of foreign exchange rate changes - (17) (8) - (25)
Charge for the year 2 69 32 - 103
Disposals - (69) (47) - (116)
Impairment charge on assets - 4 1 - 5
Reclassifications to assets held for sale (16) - - - (16)
As at 30 March 2024 48 394 281 - 723
Effect of foreign exchange rate changes (2) (12) (7) - (21)
Charge for the year 2 77 33 - 112
Disposals - (36) (23) - (59)
Impairment charge on assets - 8 2 - 10
As at 29 March 2025 48 431 286 - 765
Net book value
As at 29 March 2025 43 258 76 21 398
As at 30 March 2024 43 237 77 49 406
During the 52 weeks to 29 March 2025, management carried out a review of retail cash generating units comprising right-of-use asset and property, plant and equipment, for any indication of impairment or reversal of impairments previously recorded. Where indications of impairment charges or reversals were identified, the impairment review compared the value-in-use of the cash generating units to their net book values at 29 March 2025. The pre-tax cash flow projections used for this review were based on financial plans of expected revenues and costs of each retail cash generating unit, approved by management, reflecting their latest plans over the next three years to 1 April 2028. For the remainder of the asset life, the cash flows assume industry growth rates of 5% (last year: 5%) and cost inflation rates appropriate to each store's location, followed by longer-term growth rates of mid-single digits (last year: mid-single digits) and inflation rates appropriate to each store's location. The pre-tax discount rates used in these calculations were between 10.5% and 12.8% (last year: between 10.2% and 12.1%) based on the Group's weighted average cost of capital adjusted for country-specific borrowing costs, tax rates and risks for those countries in which a charge was incurred. Where indicators of impairment have been identified and the value-in-use was less than the carrying value of the cash generating unit, an impairment of property, plant and equipment and right-of-use asset was recorded.
During the 52 weeks to 29 March 2025, a charge of £42 million (last year: £14 million) was recorded within net operating expenses as a result of the annual review of impairment for retail store assets. The charge is comprised of £10 million (last year: £5 million) recorded against property, plant and equipment and £32 million (last year: £9 million) recorded against right-of-use assets. Refer to note 13 for further details of right-of-use assets.
The impairment charge recorded in property, plant and equipment related to 17 retail cash generating units (last year: six retail cash generating units) for which the total recoverable amount at the balance sheet date is £17 million (last year: £15 million).
Property, plant and equipment continued
Management has considered the potential impact of changes in assumptions on the impairment recorded against the Group's retail assets. Given the macroeconomic and political uncertainty risk on the Group's retail operations and on the global economy, management has considered sensitivities to the impairment charge as a result of changes to the estimate of future revenues achieved by the retail stores. The sensitivities applied are an increase or decrease in revenue of 10% from the estimate used to determine the impairment charge or reversal. It is estimated that a 10% decrease/increase in revenue assumptions for the 52 weeks to 28 March 2026, with no change to subsequent forecast revenue growth rate assumptions, would result in a £11 million increase/£18 million decrease in the impairment charge of retail store assets in the 52 weeks to 29 March 2025 (last year: £19 million increase/ £9 million decrease).
No assets were classified as held for sale at 29 March 2025. During the 52 weeks to 29 March 2025, the Group completed the sale of a freehold property previously classified as held for sale for £12 million, resulting in a net gain on disposal of £nil.
Right-of-use assets
Net book value
Property right-of-use assets
£m
Non-property
right-of-use assets
£m
Total right-of-use assets
£m
As at 1 April 2023 950 - 950
Effect of foreign exchange rate changes (27) - (27)
Additions 162 - 162
Business combination 2 - 2
Remeasurements 169 - 169
Depreciation for the year (234) - (234)
Impairment charge on right-of-use assets (9) - (9) As at 30 March 2024 1,013 - 1,013
Effect of foreign exchange rate changes (17) - (17)
Additions 65 5 70
Remeasurements 80 - 80
Depreciation for the year (244) (3) (247)
Impairment charge on right-of-use assets (32) - (32)
As at 29 March 2025 865 2 867
As a result of the assessment of retail cash generating units for impairment, an impairment charge of £31 million (last year:
£9 million) was recorded for impairment of right-of-use assets related to trading impacts. Refer to note 12 for further details of impairment assessment of retail cash generating units. The impairment charge in the prior year arose from the impairment of right-of-use assets related to trading impacts.
The impairment charge recorded in right-of-use assets relates to 18 retail cash generating units (last year: seven retail cash generating units) for which the total recoverable amount at the balance sheet date is £53 million (last year: £44 million).
At 29 March 2025, an impairment charge of £1 million was recognised in relation to non-retail right-of-use assets arising as a result of the Group's restructuring programme and was presented as an adjusting item (refer to note 6).
As a result, the total impairment charge for right-of-use assets was £32 million (last year: £9 million).
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Burberry Group plc published this content on May 14, 2025, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on May 14, 2025 at 06:03 UTC.
