Burberry reports 8 percent net profit growth for the full year
Burberry reports adjusted pretax profit rise of 8 percent to GBP 461 million in the 12 months to March 31. Burberry also indicated wholesale revenue from beauty will grow about 25 percent at constant exchange rates this year and that it is targeting “mid-teens percentage” growth in fragrances from fiscal 2016.
Burberry, which opened its first fragrance and cosmetics store in December, plans to add more beauty boutiques and counters. The company will introduce skincare products as soon as late 2015.
Excluding beauty, wholesale revenue will be broadly unchanged in the six months through September, from 244 million pounds in the same period last year, Burberry said.
In Japan, the company plans to add to its four stores and 10 concessions in an effort to boost revenue there to more than 100 million pounds by fiscal 2017 with incremental profit of about 25 million pounds.
This year, Burberry plans to open 20 to 25 so-called mainline stores, mostly in major markets and travel retail, and close 15 to 20. Three-quarters of its planned 200 million-pound annual capital expenditure will go on retail.