BRBY: Weaker Demand Weighs on Revenue Guidance for 2024
(LON: BRBY) Burberry Presents H1 FY24 Interim Results
Burberry
Weighting as of writing: 2%
30th December 2023 - H1 FY 24 Interim Results
On November 16th, Burberry presented interim reports for the first two quarters of FY24. Citing a global slowdown in luxury demand, Akeroyd remarked “If the weaker demand continues, we are unlikely to achieve our previously stated revenue guidance for FY24”. Some call this a profit warning. Shortly after, the £3.2 billion consensus estimate for 2024 revenue was revised to £3.13 billion (representing 1% YoY growth). The consensus for 2024 EBIT was also revised down by 8% to £566.8 million. Medium-term aspirations of £4 billion in sales remain unchanged.
With a third-quarter update scheduled for January 19th, it will be a good time to see how the consumer behaved during the festive season. A deeper discussion on the business, its place in the luxury market, and growth vectors can be found here.
Key points from the conference:
Revenue (£1.4 billion) up 4%, or 7% at constant exchange rates (CER). Comparable sales…