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Burberry delivers record profits in challenging markets
May '10
Burberry Group plc, the global luxury company, announces its results for the year ended 31 March 2010.


• Sales up 7% to £1,280m
• Adjusted profit before tax up 23% to £215m
• Adjusted retail/wholesale profit up 25% to £138m
o Gross margin up 760 basis points
o Operating margin of 11.6%
• Inventory down 36%, despite 9% space increase
• Net cash of £262m
• Adjusted diluted earnings per share up 16% to 35.1p
• Full year dividend up 17% to 14.0p
• Plans to accelerate investment in 2010/11 while further enhancing the brand
o 20-30 new stores, biased towards the Americas and Asia Pacific
o Focus investment in digital commerce, key product categories and Emerging Markets
o Increase capital expenditure to around £130m

Angela Ahrendts, Chief Executive Officer, commented:“Burberry has delivered record profits in what have been very challenging markets. Our outstanding team, the consistent execution of our strategies and our brand momentum have once again enabled us to gain share in the luxury market.

Looking forward, while mindful of the economic environment, Burberry plans to build on its strong financial position by accelerating investment in growth initiatives in retail, digital and new markets, while continuing to enhance the brand.”

Throughout this announcement, “adjusted” refers to profitability measures (pre and post tax) calculated excluding:
1. Restructuring costs of £48.8m in 2010 (2009: £54.9m) relating to the Spanish restructuring and the Group's cost efficiency programme
2. Impairment charges of £129.6m in 2009 relating to Spanish goodwill (£116.2m) and stores (£13.4m)
3. Credit of £1.7m in 2009 representing negative goodwill on the formation of the Burberry Middle East joint venture
4. Impact of deferred tax write-off in 2010 (£39.6m, comprising £27.3m of prior years' assets and £12.3m of 2009/10 tax losses not recognised) and one-off tax credits in 2009 (£32.6m)
5. Net charge of £7.9m in 2009 relating to the relocation of global headquarters

Underlying change is calculated at constant exchange rates. Certain financial data within this announcement have been rounded

Burberry will update on trading on 13 July 2010 when it will issue its Interim Management Statement in respect of the First Quarter. The AGM will be held on 15 July 2010.

Click here for more details

Burberry Group plc

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