Home / Knowledge / News / Fashion / Burberry Group posts excellent growth in all regions
Burberry Group posts excellent growth in all regions
19
Nov '08
Burberry Group plc, the global luxury company, today announces its unaudited results for the six months ended 30 September 2008.

Financial highlights:
–Adjusted operating profit of £98.4m up 3%; up 7% excluding new HQ/SAP costs of £3.8m
–Profit before tax up 1 % and reported EPS up 14%, benefiting from tax adjustment relating to prior years

Group financial highlights:
–Revenue up 20%, 13% on an underlying basis. Exchange rates increased revenue by £31m.
-Adjusted operating profit up 3% or 7% excluding Horseferry/SAP costs of £3.8m. Exchange rates increased profit by £3.5m.

Adjusted operating margin of 18.3% (2007: 21.2%), with approximately 100 basis points of the decline due to the planned lower proportion of revenue from licensing.

Operational highlights:
By channel-
•Retail revenue up 21 % (14% underlying); comparable store sales growth of 3%; opened a net five mainline stores
•Wholesale revenue up 23% (15% underlying); Americas, Europe and Emerging Markets all performed strongly
•Licensing unchanged (down 3% underlying); good growth in global product licences especially fragrances

By region-
•Double-digit growth in all regions, except Spain
•Joint venture formed in Middle East - a high growth Emerging Market
•Joint venture being finalised for non-apparel in Japan - largest luxury accessories market in the world

By product-
•Double-digit growth in all product categories
•Non-apparel up 20% to contribute 31 % of revenue
•Outerwear and innovative check performed strongly

Outlook:
•In line with other luxury companies, trading has become more difficult since start of second half, particularly in the United States
•Peak season trading to come; if initial trends continue, adjusted profit before tax would be in mid to lower half of current range of market expectations
•Cost efficiencies of £15-20m for 2009/10 already identified, enabled by investments made in supply chain, IT and infrastructure; reviewing further significant savings to underpin profitability going forward
•Strategies remain strong to drive out performance and long-term value creation

Angela Ahrendts, Chief Executive Officer, commented:
"The fundamentals of Burberry remain strong, despite the current very challenging environment. With our supply chain and IT investments in their final phases, we are now in a position to drive significant efficiencies in the near term.

These benefits, along with continued investment in the business, our seasoned management team, strong brand perception and proven strategies underpin our confidence in the future long-term growth of Burberry.

I am also delighted today to announce two joint ventures with long-standing partners - the first in the Middle East and the second for non-apparel in Japan - both of which will accelerate our growth in these key regions."

Burberry Group


Must ReadView All

Courtesy: Pexels

Textiles | On 19th Sep 2018

Punitive PRC tariffs on US goods has extra 5% on textiles

Responding to Washington’s latest duty increase in a dispute with...

Courtesy: Tecnorama

Textiles | On 19th Sep 2018

'Reliability & excellent quality are Tecnorama’s USP'

The complete reliability and excellent quality of Tecnorama systems...

Courtesy:  Stanislav Kondratiev on Unsplash

Apparel/Garments | On 19th Sep 2018

AAFA questions US tariffs on $200 bn Chinese goods

The American Apparel & Footwear Association (AAFA) has questioned...

Interviews View All

Krishnanand Tripathi, Textrade International Ltd

Krishnanand Tripathi
Textrade International Ltd

We believe in vocational education for entry-level employees, offering...

Abhimanyu Singh Rathore & Barbara Anna Kosiorek, Kannbar

Abhimanyu Singh Rathore & Barbara Anna Kosiorek
Kannbar

‘Blending cultures is the true beauty of fashion, where one’s imagination...

Karin Ekberg, Leadership & Sustainability

Karin Ekberg
Leadership & Sustainability

Sustainable models are beneficial for brands, retailers and manufacturers

Karan Behal,

Karan Behal

Karan Behal, founder and chief executive of top-selling brand...

Hardik Sanghvi,

Hardik Sanghvi

Idealin Fogging Systems has been engaged in designing and manufacturing...

Umang Banthia,

Umang Banthia

Established in 2005, SL Banthia Textiles manufactures coated fabrics....

Davide Vigano, Sensoria

Davide Vigano
Sensoria

Sensoria is a leading developer of smart garments and IoMe (Internet of...

Pierre Wiertz, EDANA

Pierre Wiertz
EDANA

Pierre Wiertz talks about the vast world of sustainable nonwovens and...

Mr Ambrose Chan, DSG International (Thailand) PLC

Mr Ambrose Chan
DSG International (Thailand) PLC

Prathyusha Garimella, Prathyusha Garimella

Prathyusha Garimella
Prathyusha Garimella

Hyderabad-based designer <b>Prathyusha Garimella</b> is known for blending ...

Varsha Wadhwa, VW

Varsha Wadhwa
VW

Coming from a family that ran a business of jute and linen mills since...

Wendell Rodricks, Wendell Rodricks

Wendell Rodricks
Wendell Rodricks

"We should not compare India and the West. There are things we do that...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

Leave your Comments


September 2018

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Advanced Search