financial
financial

Burberry Profits Surge As Sales Increase 17%

Burberry Group plc shrugged off worries of faltering consumer confidence Wednesday, noting demand for high-end accessories and strong sales in the U.S. pushed its profits up 22.6 percent to 135.2 million pounds, or $271.4 million, in the year ended...

financial/news
A fall 2007 look from Burberry Prorsum

A fall 2007 look from Burberry Prorsum.

Photo By WWD Staff

LONDON — Burberry Group plc shrugged off worries of faltering consumer confidence Wednesday, noting demand for high-end accessories and strong sales in the U.S. pushed its profits up 22.6 percent to 135.2 million pounds, or $271.4 million, in the year ended March 31.

In the previous year, the company's profits came in at 110.2 million pounds, or $221.2 million.

Burberry registered full-year sales of 995.4 million pounds, or $1.99 billion, up 17 percent from 850.3 million pounds, or $1.7 billion, in the same period last year. All dollar figures have been converted at average exchange rates.

"[The results] demonstrate the robustness of our global luxury business in these challenging times, with consistent performance across our regions, channels and products," said Angela Ahrendts, chief executive officer of Burberry.

A one-off profit of 15.1 million pounds, or $30.3 million, from the sale of Burberry's Haymarket headquarters in advance of a relocation planned for later this year, further boosted the company's bottom line.

Alongside this, Burberry attributed the rise in profits to the growth in sales of its luxury handbags and shoes, with non-apparel revenues shooting up 37 percent in the year to 289.7 million pounds, or $581 million. Women's wear, meanwhile, grew 13 percent to 345.2 million pounds, or $692 million. The company has increased its retail space by 12 percent during the year, opening 20 mainline stores and 49 concessions.

During a results presentation Wednesday, Ahrendts highlighted children's wear and shoes as key areas of future growth for the company, saying Burberry expects those categories to each represent 10 percent of total revenues in five years. Sales of women's shoes have doubled over the past year, and Ahrendts said the average unit retail price of footwear increased 20 percent during the year.

And despite jitters in the U.S. economy, the company said it recorded a 19 percent rise in turnover in North America, excluding licensing revenues, to 234.8 million pounds, or $471.3 million, driven by sales of outerwear and strong performances in Burberry stores.

"We play very broad across different product categories [in the region]," Ahrendts told WWD Wednesday.
Page:  Next »
VIEW ARTICLE IN ONE PAGE
load comments

ADD A COMMENT

Sign in using your Facebook or Twitter account, or simply type your comment below as a guest by entering your email and name. Your email address will not be shared. Please note that WWD reserves the right to remove profane, distasteful or otherwise inappropriate language.
News from WWD
Newsletters

Sign upSign up for WWD and FN newsletters to receive daily headlines, breaking news alerts and weekly industry wrap-ups.

LatestPublications
getIsArchiveOnly= hasAccess=false hasArchiveAccess=false