Q1 2017 Burberry Group PLC Trading Statement Call

Jul 13, 2016 AM BST
BRBY.L - Burberry Group PLC
Q1 2017 Burberry Group PLC Trading Statement Call
Jul 13, 2016 / 08:00AM GMT 

==============================
Corporate Participants
==============================
   *  Carol Fairweather
      Burberry Group plc - CFO
   *  Fay Dodds
      Burberry Group plc - VP, IR

==============================
Conference Call Participants
==============================
   *  Helen Brand
      UBS - Analyst
   *  Thomas Chauvet
      Citi - Analyst
   *  Luca Solca
      Exane BNP Paribas - Analyst
   *  Louise Singlehurst
      Morgan Stanley - Analyst
   *  Warwick Okines
      Deutsche Bank Research - Analyst
   *  Rogerio Fujimori
      RBC Capital Markets - Analyst
   *  Dan Gianera
      Macquarie Research - Analyst
   *  Annabel Gleeson
      Redburn Partners - Analyst

==============================
Presentation
------------------------------
Operator   [1]
------------------------------
 Good morning, ladies and gentlemen, and welcome to the Burberry first-quarter trading update analyst and investor call. My name is Zoe and I'll be your operator for today's conference. (Operator Instructions).

 I will now hand you over to your host, Carol Fairweather, to begin today's conference.

------------------------------
 Carol Fairweather,  Burberry Group plc - CFO   [2]
------------------------------
 Thank you. Good morning, and welcome to Burberry's first-quarter trading update conference call.

 You will have seen the announcements made earlier this week about the changes to our senior management team, so, as usual, today's call will be focused on the first-quarter trading.

 With me this morning is Fay Dodds from our Investor Relations team. I will make a few brief comments on this morning's announcement and then we will be happy to take your questions.

 In what remained a challenging external environment, underlying retail revenue in the first quarter was unchanged at constant exchange rates, and up 4% at reported rates.

 Comparable sales were down 3%, with all three regions posting low single-digit comp declines.

 First within Asia. Mainland China saw comparable sales for the quarter unchanged, year on year. Our performance is currently being impacted by the ongoing elevation of our store network in Beijing, which is our largest market within China. Excluding Beijing, comparable sales in China remained up by a mid-single digit percentage.

 Hong Kong continued to suffer significant double-digit footfall decline, although the market did show some improvement compared to the fourth quarter. While comparable sales remained down by a double-digit percentage, this was better than the declines of over 20% we had seen for the previous three quarters. And excluding Hong Kong and Macau, comparable sales in the region were positive.

 Second, in EMEIA. The UK, which accounts for over one-third of the region's retail revenue, improved, particularly in the final weeks of quarter, to deliver mid-single digit percentage growth. Continental Europe, however, remains depressed, with continued double-digit declines in sales to the traveling luxury customer, particularly in France and Italy, offset in part by growth from domestic customers in all major markets.

 And then, in the Americas, we continued to experience uneven demand from domestic customers, and spend from traveling luxury customers, which represents over 15% of the market, remained down by a double-digit percentage.

 Meanwhile, digital continued to outperform and grew strongly in all regions. And mobile now represents approaching 60% of traffic to the site and delivered the majority of the growth.

 As regards product. In mainline stores, fashion, which tends to have a lower gross margin, outperformed replenishment, with a positive customer response to innovation and newness.

 So turning now to guidance. There is no change for retail space or licensing revenue from what we said in May. For wholesale, the response from our customers to the move to one label continues to be positive. However, our outlook for revenue in both fashion and beauty, particularly in the US, is now more cautious for both the first and second half of the year.

 We now expect wholesale revenue to be down over 10% in the first half. This reflects significantly tighter inventory control by our US customers, and cautious ordering in the other regions. And the elevation of beauty distribution in certain key markets.

 Having completed the review of growth drivers for our fashion business that we spoke about in May, we're now carrying out the same exercise for beauty.

 And finally, as regards guidance, let me just update you on FX. Using the rates as of June 30, the recent depreciation of sterling means that the expected benefits of FY17 is now about GBP90 million for retail wholesale profit when compared to last year's rate, which is about GBP40 million more than when we spoke in May.

 So let me now just update you on our initiatives to deliver enhanced revenue growth and improved efficiency, which are well underway.

 Starting with the initiatives to drive revenue growth, which are grouped under three headings. First, under product. In order to deliver greater visibility for fashion and newness, we have reduced the number of SKUs for [main] market by about 15%.

 And in marketing, you will have seen that the main campaign is now more product focused and features the patchwork bag.

 Secondly, under retail excellence, we've increased investment in training, with regional conferences planned for our store management teams over the summer, focusing on customer cultivation. And as we look to elevate our service, our growing team of Burberry private client sales associates, whose productivity is significantly above the average, delivered an increased number of personal appointments in the quarter.

 And third, under eCommerce. The relaunch of burberry.com with improved content and functionality, is scheduled to be launched in the autumn, as planned. And the customer app facilitating mobile checkout in particular, is also on schedule.

 And then turning to process. Our plans to improve efficiency through changes in our ways of working are well underway and as a result, we remain confident in delivering the financial goals for this year and through 2019 as we outlined in May.

 And finally, I should just let you know that we will shortly be starting the previously announced share buyback program of up to GBP150 million.

 So, in conclusion, at this early stage in the year, we continue to operate in a challenging external environment where underlying cost pressures persist.

 But against this background, we have remained focused on managing the business day to day, while implementing the initiatives announced in May, to deliver enhanced revenue growth through focusing on key products, retail productivity and eCommerce and improved efficiency through changes to our ways of working.

 So, with that, Fay and I would now be happy to take your questions.

==============================
Questions and Answers
------------------------------
Operator   [1]
------------------------------
 (Operator Instructions). Helen Brand, [UBS].

------------------------------
 Helen Brand,  UBS - Analyst   [2]
------------------------------
 I've got three question, if I may. Firstly, you said that you're happy with the consensus PBT of GBP413 million, would it be fair to assume that this reflects low single-digit like for like for the year? And is there anything that you're seeing currently that suggests that like for like can't return to positive trends in Q2, particularly given the 10 percentage point easier comp base?

 Then secondly just on wholesale, you've guided that down over 10% now in H1, what's the main delta there between the US and beauty within that? And can you talk to your early indications for H2 here and also the split between the core wholesale business and beauty as well?

 And finally, I appreciate it's a Q1 trading call but you've obviously outlined the plan to increase sales densities more in line with the peers, can you just talk to, with the management changes, will the new CEO be spearheading this retail excellence process when he comes in and what previous experience he has here in his many years in the industry?

 And do you still think that you may need to strengthen headcount in retail, further down the organization at all?

------------------------------
 Carol Fairweather,  Burberry Group plc - CFO   [3]
------------------------------
 Okay, Helen. Do you want to take the one on consensus, Fay, and then I'll take wholesale?

------------------------------
 Fay Dodds,  Burberry Group plc - VP, IR   [4]
------------------------------
 Yes. What we've said this morning is that now that most of the analysts have actually included the FX benefit, consensus is about GBP413 million, we're not going to particularly comment on what that includes, in terms of like for likes. It's very rare for us to do that.

------------------------------
 Carol Fairweather,  Burberry Group plc - CFO   [5]
------------------------------
 And then turning to our wholesale guidance, what we're saying now is that, as we look forward to H1, we had guided as we said to around 10%, we're now saying that will be above negative 10% both in fashion and in beauty and they're probably around and about the same.

 What's happened, I think, is that we've seen that beauty wholesalers are also reacting to the external environment and they're destocking, I think not just for us but for other fragrance brands. Importantly our sell out on our new products, so My Burberry and Mr. Burberry remains strong. It's the sell-in that's being impacted and now we're expecting beauty revenues to be down by, in the something like around 10%, across the year and probably broadly split equally, sort of half on half, something like that.

 And then in terms of retail expertise, Fay.

------------------------------
 Fay Dodds,  Burberry Group plc - VP, IR   [6]
------------------------------
 Yes, Helen, as you know, we did a huge amount of work over the last six to nine months identifying the opportunities to improve retail productivity. That is well under way, under Christopher's leadership with the existing team. But I'm sure as Marco joins, he is a luxury retail person through and through and he will be able to add to that program.

------------------------------
 Helen Brand,  UBS - Analyst   [7]
------------------------------
 Okay, thanks very much. And just on that Q2 like for like and that 10 percentage point easier comp basis, just following up on that, is there anything you're seeing that doesn't suggest that shouldn't return to positive?

------------------------------
 Fay Dodds,  Burberry Group plc - VP, IR   [8]
------------------------------
 I think, Helen, we've all been caught out with the weak comp argument before. Remember we're doing that with Hong Kong. Things will get much better in Hong Kong because of the weak comp, so this is an early stage of the year. I think the most important thing to note is that Christopher talked in his quote about things being -- remaining very challenging.

------------------------------
 Helen Brand,  UBS - Analyst   [9]
------------------------------
 Okay. Thank you very much.

------------------------------
Operator   [10]
------------------------------
 Thomas Chauvet, Citi.

------------------------------
 Thomas Chauvet,  Citi - Analyst   [11]
------------------------------
 I have three questions, please. The first one I'd like to have a bit more color on your minus 3% LFL. Could you split perhaps ASP and volumes, perhaps outlets versus mainline stores? And if we think of LFL by nationality, what is the slight improvement coming from, in terms of customer cluster, is it from the Chinese customer improving sequentially? That's my first question.

 Secondly, on FX and pricing, obviously the sterling but also the euro have moved quite a lot, versus the dollar recently. Have you taken or will you implement price increase in both the UK and Continental Europe to reduce the price gap with Asia and the US? Are you happy with the gap as it has moved in recent weeks?

 And finally, still an FX-related question. If you're happy with consensus PBT of about GBP415 million or GBP413 million. I believe this means you're not reinvesting any of the additional GBP40 million FX benefit into the business? Is that a fair assumption? Thank you.

------------------------------
 Carol Fairweather,  Burberry Group plc - CFO   [12]
------------------------------
 Okay, Thomas, so in terms of the minus 3% like for like, the split between ASP and volume, ASP may be up just a tad but it's volumes that are down. We don't ever split out the split between mainline and outlets so nothing specific to say --

------------------------------
 Thomas Chauvet,  Citi - Analyst   [13]
------------------------------
 You used to, but --

------------------------------
 Carol Fairweather,  Burberry Group plc - CFO   [14]
------------------------------
 I don't think we have for a little while now.

------------------------------
 Thomas Chauvet,  Citi - Analyst   [15]
------------------------------
 Okay, well did outlet outperform mainline stores?

------------------------------
 Carol Fairweather,  Burberry Group plc - CFO   [16]
------------------------------
 No. And then in terms of nationality, what we're saying is, when you were asking, if we look by region, what we are saying is that the UK we saw return to positive growth. Remember for us, about [50%] tourist market and even within domestic we've probably got lots of ex-pats too.

 You're asking -- if you talk about the Chinese, in particular, we had said that we had seen Chinese -- growth from the Chinese, slow overall as we went through quarters 3 and 4 last year, and that just slowed a little bit more than it had in Q4.

 Other than that by region, I don't think there's very much to call out specifically, all regions improved just a little bit. We've talked about Hong Kong improving to -- now not to be down over 20% but -- and China, impacted by Beijing.

 But other than that, I think a little bit improvement. And I would say we feel that that's the initiatives we spoke to you about beginning to kick in, be it around product in the stores, be it around retail service, that's product marketing.

 And then in terms of FX and the impact on pricing. We've chatted before about the fact that we have a global pricing strategy. We don't tend to make knee-jerk reactions when FX rates move. Clearly there has been a significant shift and we'll wait until that's settled and then make any price adjustments that may be appropriate, always looking to see also what our peers are doing.

 So nothing new to call out, in terms of pricing today.

 And then on your point on consensus and the FX impact. Clearly there has been a GBP40 million upgrade at June 30 base. Remember, we manage the business day to day on an underlying basis and therefore whilst the FX moves affect reported profit that doesn't necessarily change any investment decisions or anything else, in terms of the way we're managing the business, which we always look to deliver growth on an underlying basis.

------------------------------
 Thomas Chauvet,  Citi - Analyst   [17]
------------------------------
 Very clear. Thank you.

------------------------------
Operator   [18]
------------------------------
 Luca Solca, Exane.

------------------------------
 Luca Solca,  Exane BNP Paribas - Analyst   [19]
------------------------------
 I wonder, there have been major changes since we last spoke and I wonder what Brexit could mean for Burberry. Are you considering or envisaging any changes to the organization or the way that you conduct your business, to adjust to this scenario going forward?

 As a second question and continue with the big changes coming on, I wasn't clear when the new CEO is going to join Burberry. I wonder if you could give us a bit more of a detail on that.

 And, lastly, I was wondering whether you see any differences in sales trends when you look at your assortment and divide it by price point? Thank you.

------------------------------
 Carol Fairweather,  Burberry Group plc - CFO   [20]
------------------------------
 Yes. Okay, Luca. So, in terms of Brexit, as you know, this wasn't the outcome necessarily that we would have been hoping for but, that said, we now need to move on.

 We're a global Company and in the short term we don't see any -- other than the FX benefit, which we've called out today, we don't see any discernable impact on our operations globally.

 I think it's far too early to call out what the longer-term impact may be and, as that becomes clearer, we will obviously respond to make sure that we continue to optimize and deliver on our strategies.

 But I think it's still very early days and we're just focusing on continuing to manage the business day to day and on those growth opportunities ahead of us. But we'll keep you posted as we get more clarity, along with everyone else, on what this really means.

 In terms of the CEO role, Fay.

------------------------------
 Fay Dodds,  Burberry Group plc - VP, IR   [21]
------------------------------
 Yes, in terms of when Marco's able to join us, it will be some time in 2017, as we said in Monday's release.

------------------------------
 Carol Fairweather,  Burberry Group plc - CFO   [22]
------------------------------
 And then just in terms of sales trends by product, the one thing we are calling out today is just that we saw fashion outperform replenishment in this quarter, which I think is important, given we know how important newness and fashion is to the luxury consumer.

 So, that's probably the only thing. But in terms of what that meant for ASP, again, nothing significant to call out.

------------------------------
 Luca Solca,  Exane BNP Paribas - Analyst   [23]
------------------------------
 All right, thank you very much.

------------------------------
Operator   [24]
------------------------------
 Louise Singlehurst, Morgan Stanley.

------------------------------
 Louise Singlehurst,  Morgan Stanley - Analyst   [25]
------------------------------
 Obviously today's call, as you rightly said, is focused on the Q1 update, but I think, after the big announcement, definitely a thank you to Carol. We'll no doubt be chatting to you later on this year but hopefully a well-deserved break coming in 2017 for you.

------------------------------
 Carol Fairweather,  Burberry Group plc - CFO   [26]
------------------------------
 Thank you, Louise.

------------------------------
 Louise Singlehurst,  Morgan Stanley - Analyst   [27]
------------------------------
 In terms of the questions, I've got simple ones. UK, obviously much better towards the end of the period, no surprises, but can you just give us a bit more color on there and if there's any scope to increase prices going forward, given the currency?

 And then, secondly, on the US travelers, down double-digit, did that change at all over the period?

 And then my last question on domestic US. Obviously still tough and we can see that in the -- reflected in the US wholesale comments, but any change on the promotional environment that you've seen, is there anything on the inventory position to highlight? Thank you.

------------------------------
 Carol Fairweather,  Burberry Group plc - CFO   [28]
------------------------------
 So, in terms of the UK, we did say improved towards the end of the quarter. I don't think we will be -- as I said to Luca just now, I don't think we'll be changing prices in the immediate short term but we'll obviously keep that under review, depending on where sterling settles, but it has been moving day to day, as you've seen.

 In terms of what's underpinning that improved performance, we do believe it is the strategies that we put in place beginning now to kick in. So we particularly saw a pick-up in domestic across EMEIA and in -- that's very much about the focus we have on our Burberry private clients, our CVM program, our improved retail disciplines, which I think is helping with conversion, continued strength in digital.

 And also I think we've got traction in those key areas of product focus, be it around bags with the rucksack, outerwear in terms of lightweight cashmere and lace, and entry price point products.

 So, I think it's a number of -- there's not one big callout, I think it's a number of those initiatives now really beginning to kick in.

 In terms of US travelers, Fay, I don't --

------------------------------
 Fay Dodds,  Burberry Group plc - VP, IR   [29]
------------------------------
 Just to remind you, for us the Americas is about 80% local, 20% tourist. We still saw tourist down double-digit in the first quarter, very similar to the fourth quarter. And in terms of the US domestics, they were broadly unchanged, year on year.

 In terms of your question about promotional activity, the market as a whole remained quite promotional but we actually ran a shorter, sharper sale in the US.

 And I think you had a question on inventory. At March we talked about it being 10% up with a lot of the increase due to being either currencies in stock or replenishment and we're pretty relaxed about our inventory position at the moment.

------------------------------
 Louise Singlehurst,  Morgan Stanley - Analyst   [30]
------------------------------
 Great, that's very helpful. Thank you.

------------------------------
Operator   [31]
------------------------------
 Warwick Okines, Deutsche Bank, London.

------------------------------
 Warwick Okines,  Deutsche Bank Research - Analyst   [32]
------------------------------
 Two questions, please. The first is on -- back to FX. You talked about the GBP90 million benefit, presumably that's a bit of a mix between translation benefits and transaction costs.

 Could you maybe talk about whether there is a drag on COGS from the stronger euro this year or whether more of the negative impact from currency should come through into the next financial year?

 And, secondly, can you just confirm that all your PRP is based at constant currency rather than reported? Thank you.

------------------------------
 Carol Fairweather,  Burberry Group plc - CFO   [33]
------------------------------
 Yes. So, in terms of the FX benefit, as you say, the majority of that, Warwick, this year is coming from translation. There is part of it -- there is an adverse on procurement, principally on US dollar, where just the way our hedging timing works, as we sit today, the US portion of our hedge procurement has been impacted versus the procurement rate for last year.

 But by far the most significant majority is around translation. Remember for us, with a 40% sterling cost base, that means we're getting more of that benefit coming through.

 In terms of PRP, everything is done at constant exchange rate, so nothing significant to call out there, other than the one measure in the ESP, the long-term incentive plan, where the ROIC, the return on capital measure, is actually done at a reported rate.

------------------------------
 Warwick Okines,  Deutsche Bank Research - Analyst   [34]
------------------------------
 Okay, thank you. And so, sorry, back on the procurement. So, it could be a tens of millions drag from the dollar this year on COGS. It's obviously being more than offset by --

------------------------------
 Carol Fairweather,  Burberry Group plc - CFO   [35]
------------------------------
 I wouldn't say tens of millions. I would say around that sort of number, but not tens of millions.

------------------------------
 Warwick Okines,  Deutsche Bank Research - Analyst   [36]
------------------------------
 Okay, perfect. Thanks very much.

------------------------------
 Fay Dodds,  Burberry Group plc - VP, IR   [37]
------------------------------
 Sorry, just on FX, so everyone's clear, don't forget the rates that we've put in the -- back at the announcement, include three months of basically pre-Brexit rates and then nine months on the rates at June 30.

------------------------------
Operator   [38]
------------------------------
 Rogerio Fujimori, RBC.

------------------------------
 Rogerio Fujimori,  RBC Capital Markets - Analyst   [39]
------------------------------
 Three quick questions. I was just wondering with Hong Kong down in the teens or so in Q4, how would profitability in Hong Kong compare today with global average?

 Second is just a question on the shape of the quarter. Was June materially different to Q1 figures? You mentioned UK but I was just wondering about other regions or key markets.

 And in the wholesale, has the travel retail in Asia component changed within this revised wholesale guidance? Thank you.

------------------------------
 Carol Fairweather,  Burberry Group plc - CFO   [40]
------------------------------
 Hi, Rogerio. So, in terms of Hong Kong, we did say it had got slightly better, albeit still down double-digit. All of our stores there still remain very profitable and still are some of the most profitable stores that we have. So, no change to what we have been saying previously.

 In terms of Q1 and trends, I don't think there's anything specific that we're calling out. We're saying all regions just did slightly better but no significant shifts.

 And in terms of travel retail, again, nothing. Really the biggest movements in our wholesale guidance is largely in relation to the US.

------------------------------
 Rogerio Fujimori,  RBC Capital Markets - Analyst   [41]
------------------------------
 Thank you.

------------------------------
Operator   [42]
------------------------------
 Dan Gianera, Macquarie.

------------------------------
 Dan Gianera,  Macquarie Research - Analyst   [43]
------------------------------
 Three questions from my side, please. The first one is on the SKUs. You talked about reduction, I just wanted to get a clarification here. Is that applying to all collections or just on the [fashion-related] items?

 The second one is on the wholesale. I was wondering if there is a self-inflicted impact, as well, coming from the consolidation of the three labels into a single one.

 And also wondering how much of the GBP90 million benefit to you, profit before tax from FX, do you think is already crystalized and locked in for the year? Thank you very much.

------------------------------
 Carol Fairweather,  Burberry Group plc - CFO   [44]
------------------------------
 So, Dan, in terms of the SKUs, we're saying 15% and there'll be more to come, as we go through following years. But that's pretty much right across all of the collections and will continue to reduce further as we go forward.

 In terms of wholesale, I said when I opened the call, that absolutely no impact from the three label consolidation. The response from our wholesale partners in the US has been very positive.

 What we're saying now is that we're just seeing a -- remember, H1 is not impacted at all by label consolidation and that's where we're seeing it down over 10%. And we're just saying we now see similar trends for H2 but we do not believe, in any way, that has been impacted by the consolidation.

 And then your last question, sorry I didn't quite catch what you were asking?

------------------------------
 Fay Dodds,  Burberry Group plc - VP, IR   [45]
------------------------------
 I think it was about how much of the GBP90 million FX benefit has been banked in the first quarter.

------------------------------
 Dan Gianera,  Macquarie Research - Analyst   [46]
------------------------------
 Correct.

------------------------------
 Fay Dodds,  Burberry Group plc - VP, IR   [47]
------------------------------
 And clearly a lot of that is half 2 weighted.

------------------------------
 Carol Fairweather,  Burberry Group plc - CFO   [48]
------------------------------
 Yes, and don't forget in the first quarter, so the number we're calling out this morning is only the retail number but it is very much weighted towards the second half. Two reasons; one because a quarter, as Fay said, has already been baked in. And secondly, given we are an H2-weighted business, a more significant portion of that will come in the second half.

------------------------------
 Dan Gianera,  Macquarie Research - Analyst   [49]
------------------------------
 Very clear, thank you.

------------------------------
Operator   [50]
------------------------------
 (Operator Instructions). Annabel Gleeson, Redburn.

------------------------------
 Annabel Gleeson,  Redburn Partners - Analyst   [51]
------------------------------
 Just two questions. First of all, you're obviously calling out that fashion outperformed replenishment. Firstly, is that because you promoted more, I know you said you didn't in the US, but on a global basis. And also how should we think about the gross margin pressure, because obviously your replenishment products are higher gross margin?

 And then the second question is, I know you've just said that your wholesale partners have reacted positively to the brand collapse, but can you give us an update in terms of retail? So when are you actually going to be starting to change those stores over? Maybe, can you talk a bit about the trial stores and how they're performing?

------------------------------
 Carol Fairweather,  Burberry Group plc - CFO   [52]
------------------------------
 So, in terms of fashion outperforming replenishment, it will have an impact on gross margin. But clearly it will also drive, we believe, top line outperformance. So in terms of pounds millions, we'll be positive overall.

 And I think it's -- just the reason it's outperformed in this quarter is because we are now -- we talked about the fact that the stores looked a little -- it was difficult to see the newness in the stores. And we very much changed the merchandising. We've reduced the SKUs. The way in which people are now -- a customer's able to come into the shop and see that newness in fashion, I think, is resonating really well.

 Then in terms of wholesale, as I said, we do not believe there's any impact from the label consolidation. In terms of our own retail, that's beginning to roll out right now with full implementation in the autumn. And we talked to you last year about the trial stores, now we're moving more away from those trial stores and just looking to absolutely roll it out globally. So that's happening as we speak and will be fully implemented by the autumn.

------------------------------
 Annabel Gleeson,  Redburn Partners - Analyst   [53]
------------------------------
 And what sort of percentage of stores have got that -- the new way of merchandising, i.e., all the product categories together?

------------------------------
 Carol Fairweather,  Burberry Group plc - CFO   [54]
------------------------------
 It's literally happening. It's a work in progress, Annabel, because this is the season when we actually switch over.

 So if you go into the stores now, you will begin to see it. But as I said, it's really by the time we get to the autumn that it will be fully implemented. We're doing it globally. It's not on a test store basis any more, it's just as the collection rolls out.

------------------------------
 Annabel Gleeson,  Redburn Partners - Analyst   [55]
------------------------------
 Perfect, thank you.

------------------------------
Operator   [56]
------------------------------
 There are currently no further questions.

------------------------------
 Carol Fairweather,  Burberry Group plc - CFO   [57]
------------------------------
 Okay, so thank you very much and we look forward to speaking to you again on October 18 with our first-half trading update. Thank you.




------------------------------
Definitions
------------------------------
PRELIMINARY TRANSCRIPT: "Preliminary Transcript" indicates that the 
Transcript has been published in near real-time by an experienced 
professional transcriber.  While the Preliminary Transcript is highly 
accurate, it has not been edited to ensure the entire transcription 
represents a verbatim report of the call.

EDITED TRANSCRIPT: "Edited Transcript" indicates that a team of professional 
editors have listened to the event a second time to confirm that the 
content of the call has been transcribed accurately and in full.

------------------------------
Disclaimer
------------------------------
Thomson Reuters reserves the right to make changes to documents, content, or other 
information on this web site without obligation to notify any person of 
such changes.

In the conference calls upon which Event Transcripts are based, companies 
may make projections or other forward-looking statements regarding a variety 
of items. Such forward-looking statements are based upon current 
expectations and involve risks and uncertainties. Actual results may differ 
materially from those stated in any forward-looking statement based on a 
number of important factors and risks, which are more specifically 
identified in the companies' most recent SEC filings. Although the companies 
may indicate and believe that the assumptions underlying the forward-looking 
statements are reasonable, any of the assumptions could prove inaccurate or 
incorrect and, therefore, there can be no assurance that the results 
contemplated in the forward-looking statements will be realized.

THE INFORMATION CONTAINED IN EVENT TRANSCRIPTS IS A TEXTUAL REPRESENTATION
OF THE APPLICABLE COMPANY'S CONFERENCE CALL AND WHILE EFFORTS ARE MADE TO
PROVIDE AN ACCURATE TRANSCRIPTION, THERE MAY BE MATERIAL ERRORS, OMISSIONS,
OR INACCURACIES IN THE REPORTING OF THE SUBSTANCE OF THE CONFERENCE CALLS.
IN NO WAY DOES THOMSON REUTERS OR THE APPLICABLE COMPANY ASSUME ANY RESPONSIBILITY FOR ANY INVESTMENT OR OTHER
DECISIONS MADE BASED UPON THE INFORMATION PROVIDED ON THIS WEB SITE OR IN
ANY EVENT TRANSCRIPT. USERS ARE ADVISED TO REVIEW THE APPLICABLE COMPANY'S
CONFERENCE CALL ITSELF AND THE APPLICABLE COMPANY'S SEC FILINGS BEFORE
MAKING ANY INVESTMENT OR OTHER DECISIONS.
------------------------------
Copyright 2018 Thomson Reuters. All Rights Reserved.
------------------------------