Burberry’s first-half revenue fell 20% to £1.1bn, ignoring currency impacts. Performance in Asia Pacific was worse than markets expected, but all regions posted double-digit declines.
The group reported an underlying operating loss of £41mn, down from a profit of £223mn last year largely due to the revenue decline.
Free cash flow worsened from £15mn to £184mn due to less cash being generated from operations. Net debt rose from £0.9bn to 1.4bn.
Burberry has announced a new strategy focusing on its heritage and outerwear, in an attempt to “reignite brand desire”.
No full-year guidance was given, but the group plans to deliver £25mn of cost savings before year-end. Burberry said it was “too early” to determine whether first-half losses could be fully offset in the second half.
As previously announced, dividends have been suspended.
The shares rose 5.3% in early trading.
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