The British fashion house, Burberry, has released its financial results for the first half of its 2023 fiscal year, covering the period from April to September. The brand experienced an impressive growth of 11% in revenue, reaching £1.3 billion compared to the same period last year. This growth was supported by various sectors, including retail sales, wholesale sales, and licenses, all seeing positive increases. Adjusted operating profit also saw a 21% rise, amounting to £238 million.
One of the key drivers of Burberry’s growth was its performance in the EMEIA (Europe, Middle East, India, and Africa) region, which saw an impressive 34% increase in sales. Tourist returns greatly contributed to this boost in revenue. However, not all regions experienced the same level of success. The Asia-Pacific region witnessed a decline in revenue by 4%, mainly due to COVID-19 restrictions in mainland China, leading to a significant drop of 19% in sales. The Americas also saw a decrease in growth by 3%.
Within the various sectors, Burberry highlighted the strong performance of its leather goods segment, which experienced a comparable growth of 11%. This success can be attributed to the popularity of its Lola it-bag, launched on Roblox, and the Frances model. Outerwear sales also increased by 3%. Looking ahead, Burberry aims to further develop its accessories category and have it account for more than 50% of its total revenue.
Burberry’s CEO, Jonathan Akeroyd, expressed confidence in the brand’s ability to achieve its medium-term objectives and become a leading modern British luxury brand. Akeroyd also expressed excitement about the potential for the brand to reach a revenue of £5 billion in the long term.
In addition to its financial performance, Burberry used this semi-annual report as an opportunity to reaffirm its commitment to sustainability. The brand achieved Science Based Targets approval for its net-zero emission goals and has made several commitments in recent months. As a result, Burberry was ranked first in Remake’s list of the most sustainable and ethical fashion companies.
Useful links:
1. Burberry’s sustainability reports
2. Remake Global
