Advertisement

Asia Pacific helps Burberry deliver record figures

British luxury brand Burberry hiked its dividend by 16 per cent after strong growth in the Asia Pacific region helped the company register record annual revenue and profit in 2012/13.

British luxury brand Burberry hiked its dividend by 16 per cent after strong growth in the Asia Pacific region helped the company register record annual revenue and profit in 2012/13.

Total revenue in the 12 months ended March 31st rose 8.0% from £1,857m to £1,999m, slightly above Credit Suisse's £1,997m forecast.

Advertisement - Article continues below

Adjusted profit before tax was up 14% at £428m, ahead of Credit Suisse's £417.5m forecast. However, reported profit before tax was down 4.0% at £351m after accounting for exceptional items, including £83m of termination costs of its fragrance and beauty licence relationship with Interparfums.

The firm raised its full-year dividend by 15% from 25p to 29p per share.

"Finishing the year with a strong retail performance both online and offline, Burberry achieved record revenue and profit in 2012/13," said Chief Executive Officer Angela Ahrendts.

Sales growth was led by strength in the larger Retail division, which grew by 12% to £1,417m. This now accounts for 71% of total sales, (compared with 68% the year before), generated from 206 mainline stores, 214 concessions and 49 outlets.

Despite the strength in Retail, the company did admit that growth was uneven with comparable store sales increasing year-on-year by 6.0%, 1.0%, 6.0% and 8.0% each quarter, a slowdown from the double-digit growth registered in 2011/12.

Advertisement - Article continues below

Store traffic was "soft", though this was offset by increased conversion rates and high transaction values. Online traffic meanwhile was "up significantly".

The Asia Pacific region accounted for nearly 40% of total Retail/Wholesale revenue (37% the year before) and grew by 14% during the year, compared with more subdued growth in the Americas (7.0%) and Europe (1.0%). Nearly 90% of Asia Pacific sales came from Retail with China and Hong Kong registering double-digit comparable store sales growth.

Meanwhile, both Wholesale and Licensing revenues were broadly flat on the year before, though Burberry said that Wholesale sales would drop by 10% in the first half of the current year.

Ahrendts said: "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."

Advertisement
Advertisement

Recommended

Visit/investments/investment-strategy/601044/broker-safety-your-questions-answered
Investment strategy

Broker safety – your questions answered

Cris Sholto Heaton answers more of your questions about the safety of stockbroker accounts
25 Mar 2020
Visit/investments/investment-strategy/600861/how-demographics-affects-stock-valuations
Investment strategy

How demographics affects stock valuations

New research suggests that stock and bond valuations are driven by the age of the population – at least in the US.
24 Feb 2020
Visit/investments/stocks-and-shares/600863/sirius-minerals-anglo-american-takeover
Stocks and shares

Do you own shares in Sirius Minerals? Here’s what you need to do now

Mining giant Anglo American has proposed a cash takeover of Yorkshire-based minnow Sirius Minerals. Unhappy shareholders must decide whether to accept…
20 Feb 2020
Visit/investments/stockmarkets/600634/why-investors-should-be-cautiously-bullish-for-2020
Stockmarkets

Why investors should be “cautiously bullish” for 2020

Analysts have been out in force making rosy predictions for stockmarkets in 2020, but while there is certainly a case for optimism, investors should r…
17 Jan 2020

Most Popular

Visit/economy/inflation/601584/the-end-of-the-bond-bull-market-and-the-return-of-inflation
Inflation

The end of the bond bull market and the return of inflation

Central bank stimulus, surging post-lockdown demand and the end of the 40-year bond bull market. It all points to inflation, says John Stepek. Here’s …
30 Jun 2020
Visit/investments/property/601606/house-prices-crash-uk-property-prices-falling-where-next
Property

House price crash: UK property prices are falling – so where next?

With UK property prices falling for the first time in eight years, are we about to see a house price crash? John Stepek looks at what’s behind the sli…
2 Jul 2020
Visit/investments/commodities/gold/601587/bullish-gold-price-cup-and-handle-chart-pattern
Gold

This chart pattern could be extraordinarily bullish for gold

The mother of all patterns is developing in the gold charts, says Dominic Frisby. And if everything plays out well, gold could hit a price that invest…
1 Jul 2020