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Burberry profits up 39% as retail revenue soars


In full-year results posted today, luxury British fashion brand Burberry announced that its profits-before-tax have risen 39 per cent year-on-year.

Retail revenues were a big driver of growth for the company, increasing 36 per cent in the 12 months ending March 31st 2011, and now represent 64 per cent of sales compared to 60 per cent in 2010.

As previously announced Burberry is targeting further international expansion, hoping to boost property space by 12 per cent to 13 per cent over the next year, following huge initial success in the Chinese market.

Angela Ahrendts, CEO of Burberry, said: “Burberry delivered strong operational and financial progress during the year, thanks to the consistent execution of our core strategies by our team and partners, more closely connecting our brand vision and values to consumers around the world.”

Burberry’s full-year dividend has risen 43 per cent to 20p per share and net cash has ended at £298 million following an outlay of £52 million in China on buying out ex-franchise businesses.

In second-half results published last month the company announced an even better end to the 2011 financial year than at the start, with the final six months seeing retail revenues rise 42 per cent.

The 50 ex-franchise stores in China purchased during the year saw around a 30 per cent comparison growth in sales during H2, and Burberry intends to continue to invest in real estate in the coming year.

Despite the slow growth anticipated around the world, and particularly in the UK, over the next year, Burberry intends to invest £180-200 million on capital expenditure during the next 12 months after spending £108 million in 2011.

Ahrendts added: “While mindful of global macro challenges in the current year, we will continue to invest to drive growth across our portfolio by channel, region and product.”

Published on Thursday 26 May by Editorial Assistant

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