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Burberry profits up 50% in first half


Global luxury fashion retailer Burberry saw profit before tax rise 50 per cent in the six months to September 30th.

Adjusted revenue increased 21 per cent to £641 million, while there was nine per cent growth in comparable store sales.

Burberry’s interim dividend was up 43 per cent to five pence and the company’s net cash level stood at £181 million.

The retailer also made progress with its key strategies, opening 20 mainline stores across the world - mainly in the America and Asia Pacific regions - and increasing sales of non-apparel products.

It also indicated that retail productivity improved during the six months, “driven by monthly flow and replenishment”.

Angela Ahrendts, CEO of Burberry, said she was pleased with the increase in profits and adjusted revenue.

She added: “The continued focus on the brand, ongoing investment in our digital, IT and retail infrastructure, especially in China, and a disciplined approach to driving growth underpin our confidence in delivering long-term sustainable returns.”

A report prepared by Investec Securities retail analysts Katharine Wynne and David Jeary said: “Burberry continues to deliver positive earnings momentum and an increasingly robust international growth story.

“It has also ended H1 with an increase in cash balances from £56 million to £181 million.

“Although capital expenditure and revenue investment will be higher in H2, we still expect strong cash inflows, and the prospect of some capital return to shareholders in 2011.”

Published on Tuesday 16 November by Editorial Assistant

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