Strong financial performance in H1 - Burberry
Burberry Group plc, the global luxury company, announces its unaudited results for the six months ended 30 September 2011.
• Consistent double-digit revenue growth
-In retail, wholesale, all regions and all product divisions
• Strong financial performance
-Revenue up 29% to £830m
-Adjusted PBT up 26% to £162m; reported PBT £159m
-Adjusted diluted EPS up 27% to 26.9p; reported diluted EPS 26.4p
-Net cash of £174m (2010: £181m)
• Interim dividend up 40% to 7.0p per share, rebalancing between halves
• Focus on investing to drive growth
-Capital expenditure plans unchanged at £180-200m in FY 2012
-Concentrated in flagship markets including London, Hong Kong and Chicago
Angela Ahrendts, Chief Executive Officer, commented:
"Burberry has delivered a strong first half, reflecting our continued investment in innovative design, digital marketing and retail strategies. This consistent performance, balanced across channels, regions and product divisions, is enabled by our closely connected global teams and creative thinking culture.
As we begin to see initial returns from five years of infrastructure investments, we are confident that this solid foundation will enable us to optimise both our strong brand momentum and the luxury sector's opportunities, especially in high-growth flagship and emerging markets.
As the team has demonstrated in the past, we remain mindful of, and prepared to react to, any local or global uncertainties as we drive for long-term sustainable growth."
All metrics and commentary in the Group Financial Highlights and Interim Management Report except reported eps exclude the results of the discontinued business in Spain. Discontinued operations in H1 2011 delivered an operating profit of £0.6m (H1 2010: operating loss of £10.3m, including a £7.6m restructuring charge)
Adjusted measures exclude the put option liability finance charge relating to the third party 15% economic interest in the Chinese business of £2.9m (H1 2010: £0.5m)
INTERIM MANAGEMENT REPORT:-
Consistent growth across all four product divisions
• Product innovation and high impact marketing campaigns further increased the penetration of outerwear in men's and women's apparel
• Menswear grew by 37% and womenswear by 35% underlying, driven in retail by strong performances in Burberry Prorsum and London, core outerwear and tailoring
• Childrenswear grew by 24% underlying in both retail and wholesale, with increased penetration of outerwear and non-apparel
Accelerating retail-led growth
Retail sales grew by 45% underlying and accounted for 64% of revenue in the first half, up from 57% in the same period last year
• Comparable store sales increased 16%, driven by monthly flow of new receipts, enhanced replenishment processes, the global buy and sales and service initiatives
• The balance of retail sales growth came from new stores globally and the acquired China stores