Burberry's profits driven by international expansion
Luxury fashion retailer Burberry saw adjusted pre-tax profits rise 26% to £162 million in the half year to 30 September. Revenue increased by 29% to £830 million, driven by strong demand for Burberry coats and handbags.
In a trading statement issued today, Burberry said its first-half gross margin widened to 66.7% from 64.3% a year earlier. Operating margin improved to 14.9% from 14.8%.
Burberry confirmed that it will open up to ten stores in the second half many in emerging market locations such as China. Much of the company’s growth has come from fast-growing economies, which now accounts for 19% of retail and wholesale revenue.
The retailer said the full-year guidance given in October would stand and confirmed that it would focus on investing to drive growth. Planned capital expenditure plans remain in the £180 million to £200 million range for the current financial year as the retailer focuses on flagship markets including Hong Kong, London and Chicago.
Commenting on the results Angela Ahrendts, CEO, said: "Burberry has delivered a strong first half, reflecting our continued investment in innovative design, digital marketing and retail strategies."
However, Ahrendts was cautious in view of the current financial instability caused by the Eorozone debt crisis, adding: “We remain mindful of, and prepared to react to, any local or global uncertainties as we drive for long-term sustainable growth."
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Expert speakers will share with delegates how retailers can capitalise on mulitichannel international growth opportunities. The summit will be hosted at Cavendish Conference Centre, central London on Tuesday, 27th March 2012.
Speakers already confirmed for the event include: WH Smith, TUI Travel, Tesco, New Look, Aurora Fashions, The Carphone Warehouse Group, The Dune Group, Karen Millen,The Hamleys Group, Wiggle.
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