Burberry sees profits double

Burberry reported stellar profits, with sales increasing 40%. The rise saw strong sales in accessories and leather bags, bringing profits up 40% to £296m, with revenues up 27% to £1.5bn. Burberry said its focus on non-apparel had paid off,

as the sector accounted for nearly half of its sales growth.

Burberry sees profits doubleThe company planning a 12-13% increase in average retail selling space in the coming year, with a bias towards China, Latin America and the Middle East.

The brand, known the world over for its check pattern, said it would open between 20 and 25 new stores this year, despite tough economic conditions.

"With a strong financial position, Burberry will continue to invest for growth in the current year," the company said in a release.

Richard Hunter, head of UK equities at Hargreaves Lansdown Stockbrokers, said: "For the moment Burberry remains a rare and notable example of a retailer enjoying a stellar growth trajectory."

But he warned that, "the company remains exposed to changes in demand for luxury goods, which in turn is connected to general global economic health".

Burberry raised its full year dividend by 43% to 20p a share.

It predicted a small rise in its profit margin this year, although it said that would be depressed in the first six months by its investments.

Image: Burberry Beauty SS11



 

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