Record Sales and Profit at Burberry

LONDON -- The shares of Burberry (LSE: BRBY  ) have climbed 3.4% to 1,513 pence as of 8:50 a.m. EDT after the luxury retailer revealed record annual profit and sales.

Burberry, one of the world's foremost luxury fashion brands, reported sales rising 8% to £2 billion. This increase was driven by a 14% boost in Asia-Pacific revenue, predominantly from the company's retail division in China. As a result, almost 40% of Burberry's total sales now come from the Asia-Pacific region, the company's largest geographical segment. Burberry's retail division, meanwhile, has grown to represent 71% of group sales after annual wholesale revenue was broadly flat.

Burberry's normalized pre-tax profit also reached record levels, growing 14% to £428 million. However, the company incurred an £83 million exceptional charge, reflecting the termination of its fragrance license relationship with Inter Parfums in 2012.

In light of these record results, Burberry hiked its full-year dividend by 16% to 29 pence per share.

Giving her outlook for the year, Burberry chief executive Angela Ahrendts said: "Looking ahead, although the macro environment remains uncertain, Burberry is well positioned with opportunity by channel, region and product. Our brand momentum, proven strategies and closely connected global team provide confidence in Burberry's future performance."

With a market cap of £6.5 billion, Burberry is valued at 22 times its expected earnings. After the dividend was lifted today, Burberry's shares offer a trailing yield of 1.9%. Of course, whether that valuation and the prospects for the fashion industry combine to make Burberry a buy is something only you can decide.

But if you already own shares in Burberry and are looking for alternative investment opportunities, this exclusive wealth report reviews five particularly attractive possibilities. Indeed, all five opportunities offer a mix of robust prospects, illustrious histories, and dependable dividends, and they've just been declared by the Fool as "5 Shares You Can Retire On"! Just click here for the report -- it's free.


Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2443644, ~/Articles/ArticleHandler.aspx, 12/20/2014 9:47:11 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement