Burberry : Third Quarter Trading Update for the three months ended 31 December 2017

• Comparable store sales +2%
• Asia Pacific grew by a mid-single digit percentage, as did Mainland China
• EMEIA declined by a low single digit percentage, impacted by strong UK comparatives
• Americas grew by a low single digit percentage, with US revenue broadly flat
• Fashion outperformed as customers responded positively to new products across categories
• Returning top spending customers led growth aided by deeper, more personalised service
• Further good growth in direct-to-consumer digital, led by Asia Pacific

Full Year

• Guidance for FY 2018 operating profit remains unchanged and continue to expect to remain strongly cash generative
• On track to deliver cumulative cost savings of £60m in FY 2018

'We are making good progress embedding our strategic vision into the organisation and remain on track to meet our full year profit target. We are building on strong foundations and are fully focussed on the successful delivery of our multi-year plan to position Burberry firmly in luxury and deliver long-term sustainable value.'

Marco Gobbetti, Chief Executive Officer

The financial information contained herein is unaudited.

Retail revenue

• Retail sales +1% underlying; -2% reported
• Comparable store sales +2%
• Impact of net new space -1%

Comparable store sales by region:

Asia Pacific: Mid-single digit percentage growth consistent with the first half

• Mainland China delivered mid-single digit percentage growth
• Hong Kong was broadly unchanged year-on-year with improved domestic trends
• Korea saw a better performance from both domestics and tourists, although sales still declined slightly

EMEIA: Low single digit percentage decline, impacted by the UK as expected

• The UK declined by a high single digit percentage, as it annualised exceptional performance of 40% growth in the prior year boosted by tourist inflows
• Continental Europe grew and the Middle East improved

Americas: Low single digit percentage growth consistent with the second quarter

• The US was broadly unchanged year-on-year with improved conversion offsetting footfall declines
• Tourist spending, whilst still negative, showed a slight improvement compared to the second quarter

By product, fashion outperformed as customers continued to respond positively to new products across categories

• Improved outfit offer and full look merchandising showed positive early results with tops, skirts and trousers outperforming
• Preparing for new bag launches starting from Spring 2018

Direct-to-consumer digital continued to deliver good growth

• Growth was led by Asia Pacific and mobile transactions represented c.40% of revenue

At 31 December 2017, £242m of share buyback completed; total of £350m to be completed by end FY 2018.

Outlook

Guidance for FY 2018 operating profit at both constant and reported exchange rates* remains unchanged to that given at the Interim Results in November 2017. Continue to expect margin improvement at constant exchange rates and to remain strongly cash generative.

Enquiries