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Increased profits announced by Burberry

Article By: ,  Financial Analyst
May 21, 2014 10:15 AM

Burberry has released its latest financial results today (May 21st), which show that its profits and revenues both increased in the last 12 months.

Its annual results to the end of March show profits rose by eight per cent to £461 million, while there was also a 17 per cent increase in the fashion house's revenues to £2.33 billion.

However, investors were warned that unfavourable exchange results may have a damaging impact on Burberry's results for the next financial year. It was pointed out by the firm that unless rates improve, profits are likely to be "materially" affected over the next 12 months.

Chief executive Christopher Bailey stated that the new figures show the firm's "sustained strategic focus, continued investment, disciplined execution and outstanding brand momentum during the year". Mr Bailey is new to the role after taking over from Angela Ahrendts, who left the position to join Apple earlier in the year.

There was a 15 per cent rise in overall sales revealed in Burberry's results, with this part of the business contributing 70 per cent of its revenues.

Average spend

Footfall remains an issue worthy of concern among executives at Burberry, but the company was boosted by the news that the number of its customers who were buying goods, as well as their average spend, were both up on last year's data.

The release of the new financial results does not appear to have had a large impact on investors, as the share price of Burberry has actually fallen slightly in the early stages of trading this morning on the London Stock Exchange.

By 08:14 BST, stocks in the British fashion company were down by 0.24 per cent compared to the start of the session and investors will be keeping a close eye on the firm's shares today.

Burberry is hoping to widen its global appeal in the next few months and has set a target of  increasing its revenue in Japan four times over to reach £100 million by the end of 2017.

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