Strong annual performance from Burberry
Luxury clothing brand Burberry (LON:BRBY) has produced strong annual results driven by the successful implementation of a combination of product and marketing strategies, the company said.
Burberry reported that its revenue during the year to 31 March increased 27 per cent to £1.5 billion while its adjusted operating profit improved by 37 per cent to £301 million. Pre-tax profit came in at £295.7 million (2010: £211.4 million).
The firm said that its product strategies continue to drive growth, with outerwear garments contributing more than half of apparel sales in its mainline retail operation and growing at more than 30 per cent year on year. In menswear, where the firm's Spring/Summer 2011 range was the first collection designed entirely in-house, revenue grew by 31 per cent.
The firm said that the use of digital media in its marketing effort had also helped to drive brand awareness. The roll out of the new global digital platform at its Burberry World Web site during the fourth quarter improved functionality for online shopping, while digital technology - such as touch screen technology and iPads - was also introduced into key stores.
Meanwhile, Burberry has intensified the development of its non-apparel business. Last year, this segment of the business grew by 35 per cent and now represents around 40 per cent of retail/wholesale revenue (compared with 38 per cent in 2010).
The firm continues to invest in underpenetrated markets, including integrating stores that it has acquired in China. All 50 of these stores have been transferred to Burberry China. The firm has also opened 10 stores in the country, while closing three.
Emerging markets accounted for 16 per cent of retail/wholesale revenue in 2011, compared with 11 per cent in 2010.
"Burberry delivered strong operational and financial progress during the year, thanks to the consistent execution of our core strategies by our team and partners, more closely connecting our brand vision and values to consumers around the world," said Angela Ahrendts, Burberry's CEO. "While mindful of global macro challenges in the current year, we will continue to invest to drive growth across our portfolio by channel, region and product."
At 9.54am, Burberry's shares were down 2.9 per cent at 1282 pence each.
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