LONDON (dpa-AFX) - Burberry Group plc (BRBY.L) on Thursday announced its Strategy Update, aiming to establish position firmly in luxury and deliver sustainable long-term value. The company said its financial ambition is to deliver high-single digit revenue growth coupled with meaningful operating margin expansion.
The company expects to remain strongly cash generative.
Looking ahead, for fiscal 2019 and 2020, the company expects revenue and adjusted operating margin to be broadly stable year-on-year at constant exchange rates.
For the medium term, revenue and adjusted operating profit are expected to grow in fiscal 2021, with revenue growth accelerating and meaningful operating margin improvement thereafter. Adjusted earnings per share are expected to grow ahead of adjusted operating profit benefiting from an improvement in the tax rate and additional shareholder distributions.
The company said its various actions will be underpinned by continued focus on productivity, simplification and financial discipline.
Marco Gobbetti, Chief Executive Officer, said, 'Now is the right time for Burberry to implement the next phase of its transformation. By re-energising our product and customer experience to establish our position firmly in luxury, we will play in the most rewarding, enduring segment of the market. ...This will enable us to drive sustainable growth and higher margins over time, whilst continuing to deliver attractive returns to shareholders.'
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