Burberry To Invest In Larger Stores As Profit Surges
May 23 2012 - 2:59AM
Dow Jones News
Burberry Group PLC (BRBY.LN) said Wednesday it will invest in
opening larger-format stores across its markets to drive further
growth, as the luxury clothing and handbag retailer reported a big
jump in full-year profit, again boosted by surging demand in
Asia.
"We have completed another successful year," said Chief
Executive Angela Ahrendts. "While we remain vigilant about the
external environment, we will continue... to drive sustained,
profitable growth and enduring customer engagement over the long
term."
Burberry said it plans a 12% to 14% increase in retail selling
space in fiscal 2013, with a focus on larger stores. It added that
capital expenditure will be GBP180 million to GBP200 million in the
coming year.
The company, famed for its trench coats and plaid-patterned
accessories, posted net profit of GBP263.3 million for the year to
March 31, compared with GBP208.4 million a year earlier, on revenue
24% higher at GBP1.86 billion at constant exchange rates.
Adjusted pretax profit--the measure of performance watched by
analysts--stood at GBP376 million, up from GBP297.9 million, and in
line with analyst expectations of about GBP375 million. Burberry
raised its dividend 25% to 25 pence.
Burberry has been at the forefront of the worldwide surge in
demand for luxury goods in recent years, bolstered by massive sales
increases in China, even as many mid-market retailers have
struggled for survival amid torrid economic conditions and low
consumer confidence.
Luxury retailers have appeared immune to the worldwide economic
downturn and Burberry's shares have soared from a low of 154.75
pence in November 2008 to close Tuesday at 1,386 pence, mirroring
the fortunes of peers including Prada SpA (1913.HK) and LVMH Moet
Hennessy Louis Vuitton (MC.FR).
-By Peter Evans, Dow Jones Newswires; 44-20-7842-9308;
peter.evans@dowjones.com
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