Burberry posts increase in full-year profits
Burberry has posted a rise in profits for the year to 31 March but has lowered its profit guidance for the 2016 financial year due to movement in exchange rates.
Adjusted pre-tax profit rose by 7% on an underlying basis to £456 million. However, profits were down 1% after a £38 million adverse exchange rate impact was taken into account. Meanwhile, revenue climbed by 11% on an underlying basis to £2.5 billion.
The company said the main driver of growth was its British-made trench coats and cashmere scarves alongside its digital channels which continued to outperform across all of its regions.
Christopher Bailey, Burberry chief creative and chief executive officer, said: “We are pleased to report a strong full year performance, with revenue up 11% and adjusted profit up 7% underlying. Against a challenging external backdrop, our global team has focused ever more intensely on our core, including celebrating the British-made products that are our brand signature and extending our online and offline integration.”
While retail sales rose by 14%, like-for-like sales grew by 9% in the period.
The company said it now expects its reported retail and wholesale profit for the 2016 financial year to be around £40 million down on what was previously guided due to the movement in exchange rates.
Bailey added: “At this early stage of the year, we are seeing increased uncertainty in some markets. Against this background, we will continue to manage our business dynamically - capitalising on the significant opportunities we have by channel, region and product to create long-term shareholder value.”
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