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Burberry posts 'record profits and revenue' | Burberry posts 'record profits and revenue' |
(about 1 hour later) | |
Burberry, the UK luxury fashion brand, has announced a jump in annual 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. | 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. | 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. | |
New markets | |
Chief executive Christopher Bailey said the financial figures reflected "sustained strategic focus, continued investment, disciplined execution and outstanding brand momentum during the year". | 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. |
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