News Flash

All product categories deliver underlying revenue growth at Burberry

19 May '09

3 min read

Burberry Group plc, the global luxury company, announces its results for the year ended 31 March 2009.

• Total revenue of £1,202m, up 21%
- Exceeds £1bn for first time
• Adjusted profit before tax of £175m
- In line with guidance
• Rapid actions taken in challenging markets
- Executed £50m global cost efficiency programme
- Reduced inventory by £50m at constant exchange rates
- Tight focus on cash, with net cash at year end of £8m (2008: net debt of £64m)
• Full year dividend maintained at 12p per share

Angela Ahrendts, Chief Executive Officer, commented: “2008/09 was one of the most challenging years the luxury sector has ever faced, especially in the second half. Against this background, Burberry grew revenue to £1.2bn. We also took rapid action to mitigate the impact of the economic slowdown, aggressively reducing inventory, executing a £50m global cost efficiency programme, resulting in a strong financial position and operating profit in line with guidance.

We continued to refine and implement our key brand strategies, adding innovation to core outerwear and accessories, while making significant progress on our IT and operational initiatives. Entering the new year, we believe Burberry is best positioned to capitalise on opportunities which will deliver sustainable long-term growth.”

Operational highlights
• Retail revenue up 14% underlying
- Now over half of total group revenue
- Net 16 mainline stores opened; store renovations continued
- Net 22 department store retail concessions opened
• Wholesale revenue up 2% underlying
- Increased penetration in US department stores (7% of Group sales)
- Continued strong growth in Emerging Markets
- Supply chain enabled improved product flow and deliveries
• All product categories delivered underlying revenue growth
- Non-apparel up 12% - now 33% of sales
- Womens apparel up 6%; mens up 5%; outerwear over 50% of apparel
- Childrenswear up over 50%
• Continued transformation of back-of-house operations
- SAP now live in 15 countries
- Supply chain and logistics gains achieved
- Global planning facilitated improved inventory management
• Global cost efficiency programme well advanced to deliver about £50m annual savings
- £15-20m from supply chain and corporate processes
- £30-35m from cost reduction initiatives

Financial highlights
• Total revenue of £1,202m (2008: £995m)
- Up 21% reported
- Up 7% underlying
• Adjusted profit before tax of £175m (2008: £200m)
• Adjusted diluted earnings per share of 30.2p (2008: 31.6p)
• After restructuring costs associated with the cost efficiency programme, non-cash impairment charges mainly in Spain and one-off tax credits, attributable loss was £6m
• Full year dividend maintained at 12p per share
• Inventory down year-on-year by 19% or £50m at constant exchange rates
• Net cash of £8m at year end (2008: net debt £64m)

More Burberry Group Plc News... More Apparel/Garments News - United Kingdom...