The company said Wednesay it would open 20 to 30 new stores in 2010/11, many of them in the Americas and Asia Pacific, increasing its capital expenditure for the year to $187.4 million. It will also open three casualwear Burberry Brit stores, two of which will be in New York.
Sales increased 7% to $1.87 billion in the year to March 31, while adjusted retail/wholesale profit rose 25% to $198.9 milion.
Accessories Help Increases
Burberry said it would also focus investment on digital commerce, key product categories and emerging markets. The group said apparel-led retail, which showed double-digit same-store sales growth in Europe and Asia Pacific, was boosted by leather accessories, childrenswear and shoes purchases. Additionally, the company expects an improvement in wholesale performance in the first half. Licensing sales for fragrance, eyewear and watches rose 18% to $140.6 million.
“Burberry has delivered record profits in what have been very challenging markets,” said Angela Ahrendts, ceo.
“Looking forward, while mindful of the economic environment, Burberry plans to build on its strong financial position by accelerating investment in growth initiatives in retail, digital and new markets, while continuing to enhance the brand.”
Burberry incurred $70.3 million in charges related to its restructuring in Spain and its cost efficiency program, leaving reported pre-tax profit at $118.5 million, compared to a $7.35 milion loss last year.