Third Quarter Trading Update

Retail revenue 13 weeks ended 28 December 2024

Comparable store sales by region

In the third quarter, we implemented the following actions to drive Burberry Forward, generating an improvement in brand desirability, an acceleration in the performance of outerwear and scarves, and an uplift in conversion:

• Initiated brand reset with 360-degree "It's Always Burberry Weather" outerwear campaign and and "Wrapped in Burberry" festive campaign
• Aligned product focus around recognisable brand signifiers, core categories and good/better/best pricing in a luxury context
• Enhanced visual merchandising in stores with festive windows celebrating outerwear and scarves, the reintroduction of mannequins and cross category styling; introduced new styling online to appeal to broad range of luxury customers and digital innovation with our virtual scarf try-on capability
• Reunited Creative and Commercial teams in newly refurbished headquarters in London, setting the stage for improved collaboration and productivity

FY25 Outlook

As previously communicated, we are acting with urgency to stabilise the business and position the brand for a return to sustainable, profitable growth, supported by strong cash generation and balance sheet strength. We are confident that our strategic plan will improve our performance and drive long-term value creation.

While we recognise we are still early in our transformation, we are encouraged by the response from customers and partners over the festive period. In light of our Q3 performance, it is now more likely our second-half results will broadly offset the first-half adjusted operating loss, notwithstanding the uncertain macroeconomic environment.

Retail sales performance

Q3 FY25 comparable store sales declined 4% in the period, with varying performance in each region:

• Americas grew 4%, boosted by local spend. Globally, the Americas customer was in line with the regional performance. We were encouraged by performance in the New York area where we concentrated local marketing efforts after reopening our refurbished 57th St Store.
• EMEIA decreased 2% with a similar decline in both locals and tourists. Globally, the EMEIA customer group was flat.
• Asia Pacific decreased 9% with Mainland China down 7%. Globally, the Mainland Chinese customer was flat versus last year and contributed to the 4% increase in Japan. South Asia Pacific was down 19% and South Korea down 12%.

By product, outerwear and scarves continued to outperform globally. The contribution from space was 1%, leading to a 3% decline in retail sales at constant exchange rates. Currency was 4% headwind in the quarter, with retail revenue landing at £659m, down 7% at reported exchange rates.