Share your thoughts on our News & Insights section. Complete our survey to help us improve.

Share research

Burberry: weak H1 performance, new strategy announced

Burberry turned loss-making in the first half as sales declined across all regions.
Burberry logo

No recommendation - No news or research item is a personal recommendation to deal. All investments can fall as well as rise in value so you could get back less than you invest.

Prices delayed by at least 15 minutes

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.

Our view

HL view to follow.

Burberry key facts

All ratios are sourced from Refinitiv, based on previous day’s closing values. Please remember yields are variable and not a reliable indicator of future income. Keep in mind key figures shouldn’t be looked at on their own – it’s important to understand the big picture.

This article is original Hargreaves Lansdown content, published by Hargreaves Lansdown. It was correct as at the date of publication, and our views may have changed since then. Unless otherwise stated estimates, including prospective yields, are a consensus of analyst forecasts provided by Refinitiv. These estimates are not a reliable indicator of future performance. Yields are variable and not guaranteed. Investments rise and fall in value so investors could make a loss.

This article is not advice or a recommendation to buy, sell or hold any investment.No view is given on the present or future value or price of any investment, and investors should form their own view on any proposed investment.This article has not been prepared in accordance with legal requirements designed to promote the independence of investment research and is considered a marketing communication.Non - independent research is not subject to FCA rules prohibiting dealing ahead of research, however HL has put controls in place(including dealing restrictions, physical and information barriers) to manage potential conflicts of interest presented by such dealing.Please see our full non - independent research disclosure for more information.
Latest from Share research
Weekly Newsletter
Sign up for Share Insight. Get our Share research team’s key takeaways from the week’s news and articles direct to your inbox every Friday.
Written by
Aarin Chiekrie
Aarin Chiekrie
Equity Analyst

Aarin is a member of the Equity Research team. Alongside our other analysts, he provides regular research and analysis on individual companies and wider sectors. Having a keen interest in global economics, he knows how macro-events can impact individual companies.

Our content review process
The aim of Hargreaves Lansdown's financial content review process is to ensure accuracy, clarity, and comprehensiveness of all published materials
Article history
Published: 14th November 2024