Burberry Posts Record Profits and Revenue
Burberry, the UK luxury fashion brand, has announced a jump in annual profits and revenue.
Adjusted pre-tax profit for the year to the end of March was £461m, up 8% on the £428m the company posted a year ago. Revenue rose by 17% to £2.33bn.
Both figures represented records for annual results, the firm said.
But it warned that profits next year could be hit by unfavourable exchange rates, while margins may suffer from higher investment.
The company said that if exchange rates remained at current levels, overall profits next year would be “materially” affected.
It added that margins, which have increased in the past three years, could also be hit by investments in customer service and digital platforms in its flagship markets.
Chief executive Christopher Bailey said the financial figures reflected “sustained strategic focus, continued investment, disciplined execution and outstanding brand momentum during the year”.
Overall retail sales rose by 15% and contributed 70% of total revenue. While footfall remained weak, the number of customers buying goods, and their average spend, both increased.
The company said efforts to integrate its digital and physical presence had helped to drive sales, as had the move of its beauty business from licensing to direct operation.
Burberry, which already has a strong presence in China, said it would be focusing on the Japanese market, particularly in Tokyo and Osaka.
Licences in Japan expiring in June next year represented a “significant opportunity to build a growing and profitable business” in the country, Burberry said.
By the end of the 2017 financial year, Burberry said it wanted to increase revenue in Japan fourfold to £100m.