Burberry posts 18 per cent profit rise for second half
Tuesday, 15 Apr 2008 12:10
Burberry bags are selling well
Luxury-brand company Burberry reported revenue in the second half increased by 18 per cent to £546 million despite a tougher market.
Retail sales increased 17 per cent to £282 million in the six months to March 31st. Retail was the biggest contributor to sales, accounting for over 50 per cent of the group's total revenue.
Handbags and shoes continued to drive sales, while the company opened its first standalone childrenswear store, located in Hong Kong.
Over the year, nine mainline stores and nearly 40 concessions were opened in addition.
Angela Ahrendts, chief executive, said: "Burberry had a good finish to the year, against the background of an increasingly challenging external environment.
Looking forward, we are thrilled with the momentum of our brand as our core luxury, retail and non-apparel strategies continue to gain traction, while our seasoned management team focuses on improving the operational aspects of our business."
In the year to March 2009, Burberry expects average selling space to increase by 12-13 per cent year-on-year, including about 15 mainline store openings, while wholesale is expected to increase by around ten per cent.
Shares in Burberry Group jumped 9.2 per cent to £4.32 by 11:15 BST as investors were not expecting such positive results.