Burberry sales exceed GBP1bn

British luxury brand Burberry Group plc announced its revenue was up 21% for the year ended 31 March 2009. The company stated its sales exceeded the GBP1bn mark for the first time, despite posting a loss of 5.1 million pounds, compared with a profit of 135.2 million pounds a year earlier. Adjusted profit before taxes fell 12.5 percent to 175 million pounds from 200 million pounds due to lower gross margins from sales of discounted stock.

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.

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Entering the new year, we believe Burberry is best positioned to capitalise on opportunities which will deliver sustainable long-term growth.”

Operational highlights include retail revenue up 14% underlying and 16 mainline stores opened. The company saw its wholesale revenue up 2% underlying and continued strong growth in emerging markets. Womens apparel was up 6%; mens up 5%; outerwear consisted over 50% of apparel sales.

Image: Burberry check