UK: Burberry has booked strong profit and sales growth for fiscal 2010/11

The retailer is planning to raise its capital expenditure by up to 85% for 2011/12, with retail investments focused on flagship markets including London, Paris, Milan, Chicago, Hong Kong, Shanghai and São Paulo. It is also planning 20 new stores in emerging markets, which now represent 16% of Burberry's overall sales.

Retail revenues for the year to 31 March grew 36% and now represent 64% of business for the luxury firm.

For the past five years Burberry has invested heavily in supply chain efficiencies, with 80% of stores now covered by SAP.

"Now that we have a solid foundation we are investing in the front end of the business," Burberry CEO Angela Ahrendts told reporters in a conference call. "Many of our peers have had much bigger stores in our home markets, so now is the time to re-invest in London."

Ahrendts says that although the luxury goods market is expecting double-digit growth this year, it is not immune from economic impacts. "I don't think anyone is immune from the geo-political factors out there, no-one is totally sheltered," she adds.

Here's what the analysts say about Burberry's latest results:

Maureen Hinton, practice leader at Verdict: “Burberry has beaten all of the gloom in UK retailers’ results with another outstanding performance. Apart from double digit sales growth its profit before tax for the full year was up 39% to GBP297.9m, another record for the business.

“The increase in sales was boosted by the acquisition of its Chinese retail business during the year, and it is also reaping the reward of the investment it has made in its operations, systems and marketing, with comparable store sales up 11.0%.

“Burberry is well positioned for future growth. Over 2011/12 it will invest in opening more mainline flagship stores and improving and expanding existing ones to enhance its brand yet further internationally. It still has a long way to go to achieve the size and reach of other global luxury brands which makes this strategy highly achievable.”Luxury fashion firm Burberry has booked strong profit and sales growth for fiscal 2010/11 and indicated it will invest heavily in its stores this year.

The retailer is planning to raise its capital expenditure by up to 85% for 2011/12, with retail investments focused on flagship markets including London, Paris, Milan, Chicago, Hong Kong, Shanghai and São Paulo. It is also planning 20 new stores in emerging markets, which now represent 16% of Burberry's overall sales.

Retail revenues for the year to 31 March grew 36% and now represent 64% of business for the luxury firm.

For the past five years Burberry has invested heavily in supply chain efficiencies, with 80% of stores now covered bySAP.

"Now that we have a solid foundation we are investing in the front end of the business," Burberry CEO Angela Ahrendts told reporters in a conference call. "Many of our peers have had much bigger stores in our home markets, so now is the time to re-invest in London."

Ahrendts says that although the luxury goods market is expecting double-digit growth this year, it is not immune from economic impacts. "I don't think anyone is immune from the geo-political factors out there, no-one is totally sheltered," she adds.

Here's what the analysts say about Burberry's latest results:

Maureen Hinton, practice leader at Verdict: “Burberry has beaten all of the gloom in UK retailers’ results with another outstanding performance. Apart from double digit sales growth its profit before tax for the full year was up 39% to GBP297.9m, another record for the business.

“The increase in sales was boosted by the acquisition of its Chinese retail business during the year, and it is also reaping the reward of the investment it has made in its operations, systems and marketing, with comparable store sales up 11.0%.

“Burberry is well positioned for future growth. Over 2011/12 it will invest in opening more mainline flagship stores and improving and expanding existing ones to enhance its brand yet further internationally. It still has a long way to go to achieve the size and reach of other global luxury brands which makes this strategy highly achievable.”Luxury fashion firm Burberry has booked strong profit and sales growth for fiscal 2010/11 and indicated it will invest heavily in its stores this year.

The retailer is planning to raise its capital expenditure by up to 85% for 2011/12, with retail investments focused on flagship markets including London, Paris, Milan, Chicago, Hong Kong, Shanghai and São Paulo. It is also planning 20 new stores in emerging markets, which now represent 16% of Burberry's overall sales.

Retail revenues for the year to 31 March grew 36% and now represent 64% of business for the luxury firm.

For the past five years Burberry has invested heavily in supply chain efficiencies, with 80% of stores now covered bySAP.

"Now that we have a solid foundation we are investing in the front end of the business," Burberry CEO Angela Ahrendts told reporters in a conference call. "Many of our peers have had much bigger stores in our home markets, so now is the time to re-invest in London."

Ahrendts says that although the luxury goods market is expecting double-digit growth this year, it is not immune from economic impacts. "I don't think anyone is immune from the geo-political factors out there, no-one is totally sheltered," she adds.

Here's what the analysts say about Burberry's latest results:

Maureen Hinton, practice leader at Verdict: “Burberry has beaten all of the gloom in UK retailers’ results with another outstanding performance. Apart from double digit sales growth its profit before tax for the full year was up 39% to GBP297.9m, another record for the business.

“The increase in sales was boosted by the acquisition of its Chinese retail business during the year, and it is also reaping the reward of the investment it has made in its operations, systems and marketing, with comparable store sales up 11.0%.

“Burberry is well positioned for future growth. Over 2011/12 it will invest in opening more mainline flagship stores and improving and expanding existing ones to enhance its brand yet further internationally. It still has a long way to go to achieve the size and reach of other global luxury brands which makes this strategy highly achievable.”