THE RETAIL BULLETIN - The home of retail news
HOME
RETAIL NEWS
RETAIL EVENTS
Fashion
Department Stores
Shopping Centres & Retail Parks
Home & DIY
Electricals
Health & Beauty
General Merchandise
Entertainment
Sports & Leisure
Retail Solutions
Food & Drink
RETAIL INSIGHTS
RETAIL SOLUTIONS
ABOUT US
CONTACT US
SUBSCRIBE FOR FREE
Burberry profits up 14%

Luxury brand Burberry saw its adjusted pre-tax profit rise by 14% to £428 million in the year to end March as revenues were boosted by strong sales in China and Hong Kong.

GENERAL MERCHANDISE

Burberry profits up 14%

Total revenue increased by 8% to £2 billion with growth led by the retail division where sales increased by 12% to £1.4 billion. The retail division now accounts for 71% of total sales, up from 68% in the previous year. Wholesale revenue fell by 1%.

Reported profit before tax was down 4% in the year to £351 million due to costs relating to the termination of a fragrance and beauty licence relationship.

Sales in China, where the retailer has 69 stores, soared by 20% in the year. Burberry plans to open eight further stores in the country in the current financial year, including three in the flagship market of Shanghai.   

Despite the strong retail sales, Burberry said that growth was uneven with comparable store sales increasing year-on-year by 6%, 1%, 6% and 8% each quarter, a slowdown from the double-digit growth seen in 2011/12. 

Store traffic was soft, offset by increased conversion rates and higher average transaction values. The group said its online traffic and conversion grew significantly and that digital engagement had reached "record levels."

Commenting on the results, Angela Ahrendts Burberry chief executive, said: "Finishing the year with a strong retail performance both online and offline, Burberry achieved record revenue and profit in 2012/13.

"Looking ahead, although the macro environment remains uncertain, Burberry is well positioned with opportunity by channel, region and product. With the integration of Beauty in April, we have added another exciting growth platform. 

"Our brand momentum, proven strategies and closely connected global team provide confidence in Burberry's future performance."


 

Email this article to a friend

You need to be logged in to use this feature.

Please log in here

Subscribe For Retail News

RETAIL EVENTS

Retail Human Resources Summit
Retail Human Resources Summit
Wednesday 3 October 2018
The Cavendish Conference Centre, London W1
The 10th HR Summit 2018, The Cavendish Conference Centre, London W1, 3rd October 2018
The Retail Design Summit 2018
The Retail Design Summit 2018
14 November 2018
The Cavendish Conference Centre
The Retail Design Summit 2018
Omnichannel Futures Conference 2019
Omnichannel Futures Conference 2019
6 February 2019
Cavendish Conference Centre, London WG1 9DT
A truly omnichannel offering requires an understanding of customer behaviour across all shopping channels and how this should impact your overall business strategy
Customer Engagement Conference 2019
Customer Engagement Conference 2019
5 June 2019
Cavendish Conference Centre, London W1
The 10th Annual Retail Customer Engagement Summit
National Minimum Wage Breakfast Briefing
National Minimum Wage Breakfast Briefing
20 September 2018
6th Floor 1, St. Martin's Le Grand London, EC1A 4AS
National Minimum Wage Breakfast Briefing