Burberry reveals new growth strategy in H1 results

Burberry has reported a 11% increase in revenue to £1.34 billion for the first half ending 1 October 2022. 

Adjusted operating profit was up 21% to £238 million, whilst adjusted operating profit margin increased 150 bps to 17.7%.

The company opened or renovated 22 stores in the first half and plans to open or refurbish 65 stores in Burberry's new concept this year, in addition to the 47 stores from FY22.

Looking ahead, Burberry has revealed its strategy to drive continued revenue growth. Within this, the company plans to "harness the power of the brand, bring all product categories to full potential, grow customer lifetime value and provide seamless execution".

Burberry's growth strategy includes:

• Refocus on Britishness and strengthen its connection with British design, craft and culture.
• Amplify the brand through marketing and communication activations with high levels of impact.
• Double sales of leather goods, shoes and women’s ready-to-wear.
• Accelerate customer acquisition, strengthen its relationship with customers and drive loyalty.
• Strengthen distribution across all channels and regions.
• Convert all stores to new retail concept by end-FY26.
• Double e-commerce revenue to reach around 15% of retail sales in the medium term.
• Deliver sustainability commitments and positively impact its communities.

For FY24, Burberry has established a new medium-term target to grow sales to £4 billion, sustaining high-single digit growth with operating leverage ensuring good margin progression.

Jonathan Akeroyd, CEO of Burberry, said: “Burberry has an extraordinary legacy, a unique British heritage and a very strong platform to build on, as shown in our half-year results.

"Our focus in this next phase is on growth and acceleration. We have a clear plan to achieve this across brand, product and distribution and a very talented designer in Daniel Lee, supported by a passionate team. I am confident in our ability to deliver our medium-term targets and realise our potential as the modern British luxury brand."