Burberry chief executive to miss out on bonus after profit fall
Burberry’s chief executive Jonathan Akeroyd will not receive a bonus for the latest financial year after the luxury brand “underperformed” against expectations.
In the 52 weeks to 30 March, pre-tax profit declined to £383 million from £634 million in the previous year.
Revenue was also down, falling to £2.968 billion from a prior £3.094 billion.
Meanwhile, comparable store sales dropped by 1% as 10% first-half growth was offset by a challenging second half when there was an 8% decline.
During the year, Burberry refined its brand storytelling around “Modern British Luxury” to improve brand perception. The company said this drove double-digit growth in elite customer numbers and spend.
It also improved product availability on core replenishment lines and strengthened its manufacturing capabilities.
Akeroyd said: “Executing our plan against a backdrop of slowing luxury demand has been challenging. While our FY24 financial results underperformed our original expectations, we have made good progress refocusing our brand image, evolving our product and strengthening distribution while delivering operational improvements.”
Burberry is expecting the first half of its new financial year to remain challenging with wholesale revenue estimated to fall by around 25% as it increases control of distribution. The company said it will continue to balance investment in consumer facing areas with strong cost control to support growth.
Akeroyd said: “We are using what we have learned over the past year to finetune our approach, while adapting to the external environment. We remain confident in our strategy to realise Burberry’s potential as the Modern British Luxury brand and in our ability to successfully navigate this period.”
