UK Sales Struggle as Tourist Exposure Weighs on London Performance

  • Burberry lowers FY23 forecast despite record revenues
  • Record revenues of £2.82bn for FY22
  • Pre-tax profits up 4% to £511m, adjusted operating profit up 4% to £543m
  • Comparable store sales grew 18%, full-price comparable store sales up 30%
  • Full-year dividend per share up 11% to 47.0p
  • 65 new stores planned for FY23, digital focus area
  • Carbon neutral globally, targeting Climate Positive by 2040

Burberry has reported record revenues for FY22, with a 21% year-on-year increase to £2.82bn and pre-tax profits up 4% to £511m. However, the company has lowered its FY23 forecast due to currency headwinds. Full-price comparable store sales grew 18%, but mainline and digital stores saw a 9% drop from pre-pandemic levels. The UK market remains challenging, particularly in London, due to high tourist exposure. Burberry plans to open 65 new stores in FY23, with a focus on digital growth. The company is now carbon neutral globally and aims to become Climate Positive by 2040.

Factuality Level: 8
Factuality Justification: The article provides accurate and objective information about Burberry’s financial performance, including revenue growth, profit increases, store sales, and investment in sustainability efforts. It also mentions challenges faced due to Covid-19 and its impact on Mainland China and the UK market.
Noise Level: 3
Noise Justification: The article provides relevant information about Burberry’s financial performance and sustainability efforts, with a focus on its revenue growth, profit increase, store sales, and environmental targets. It also mentions the impact of Covid-19 and inflation on the company’s outlook. The content is informative and stays on topic without diving into unrelated territories.
Financial Relevance: Yes
Financial Markets Impacted: Burberry’s stock and related luxury goods sector
Financial Rating Justification: The article discusses Burberry’s financial performance, including revenue, profits, and outlook, which impacts the company’s stock and the luxury goods sector.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: No extreme event mentioned in the article

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