LONDON — Burberry Group revenue was broadly flat at 2.72 billion pounds in fiscal 2018-19, in line with expectations, as the company repositions under company chief executive officer Marco Gobbetti and designer Riccardo Tisci, whose debut collection began landing in stores earlier this year.
At constant exchange, revenue shrank 1 percent in the year to March 31. Stripping out the beauty wholesale business, which is now a license with Coty Inc., full-year revenue rose by 2 percent at both current and reported exchange rates.
Profit after tax climbed 15 percent 339 million pounds, the rise due to adjusting operating items. Operating profit in the period rose 7 percent 437 million pounds, while adjusted operating profit was down 6 percent.
All geographic regions, Asia-Pacific, EMEIA, and the Americas, delivered low-single-digit percentage growth. Burberry added that Tisci’s first collection saw “strong double-digit percentage growth” year-on-year. The company added that customers were liking the new bag collection and fuller leather offer.
“The overall category performance was impacted by softness in older lines,” the company added.
Gobbetti said the company made “excellent progress” in the first year of its plan to transform Burberry, and added the financial performance was in line with company expectations.
He said the initial reaction from customers to Tisci’s first collection was “very encouraging” and said the implementation of the turnaround plan is on track. “We are energized by the early results,” Gobbetti said.
The company confirmed its full-year 2020 outlook for broadly stable revenue and adjusted operating margin at constant exchange rates.