Financial News
INTERIM RESULTS
16 NOVEMBER 2010
Burberry Group plc, the global luxury company, today announces its unaudited results for the six months ended 30 September 2010.
Highlights
- Strong operating and financial performance
- Adjusted revenue £641m, up 21%
- Comparable store sales growth of 9%
- Adjusted retail/wholesale operating profit £87m, up 69%
- Adjusted retail/wholesale operating margin 14.8% (2009: 10.7%)
- Adjusted profit before tax £129m, up 49%
- Reported profit before tax £118m, up 50%
- Interim dividend up 43% to 5.0p
- Strong financial position with net cash of £181m (2009: £56m)
- Further progress across five key strategies
- Non-apparel up 26% to 40% of sales; led by large leather goods
- Apparel up 13%; core outerwear strength continues
- 20 mainline stores opened; focused in Americas and Asia Pacific
- Emerging Markets sales up 46%
- Retail productivity improved, driven by monthly flow and replenishment
- Continued investment in business
- Acquired Chinese retail operations; rapid integration on plan
- Rolling out retail theatre; new digital commerce platform in test
- Full year capital expenditure of around £130m; nearly double last year
Angela Ahrendts, Chief Executive Officer, commented:
“The Burberry team delivered a strong first half, with adjusted revenue up 21% and profit before tax up nearly 50%. The continued focus on the brand, ongoing investment in our digital, IT and retail infrastructure, especially in China, and a disciplined approach to driving growth underpin our confidence in delivering long-term sustainable returns.”
| “Adjusted” excludes: | |
| 1. | The discontinuing business in Spain affected by the restructuring, which in H1 2010 generated revenue of £31.9m (2009: £44.6m) and an operating loss of £2.7m (2009: £3.6m) |
| 2. | Restructuring costs of £7.6m (2009: £4.2m) relating to the Spanish restructuring and the Group’s cost efficiency programme |
| 3. | Put option liability finance charge relating to the 15% economic interest in the Chinese business of £0.5m (2009: nil) |
| Full details are provided in the Appendix | |
Underlying change is calculated at constant exchange rates
Certain financial data within this announcement have been rounded
All revenue metrics and commentary in the Group Financial Highlights and Interim Management Report exclude the results of the discontinuing business in Spain
Enquiries
| Burberry | 020 3367 3524 | |
| Stacey Cartwright | EVP, Chief Financial Officer | |
| Fay Dodds | Director of Investor Relations | |
| Jenna Littler | Director of Corporate Relations |
| Brunswick | 020 7404 5959 | |
| Nick Claydon | ||
| Laura Cummings |
There will be a presentation today at 9am (UK time) to investors and analysts at the Merrill Lynch Financial Centre, 2 King Edward Street, London, EC1A 1HQ. The presentation can be viewed live on the Burberry website (www.burberryplc.com) and can also be accessed live via a dial-in facility on 44 (0) 20 7138 0840, password 6049892. The supporting slides and an indexed replay will be available on the website later in the day.
Burberry will update on trading on 18 January 2011 when it will issue its Interim Management Statement in respect of the Third Quarter.
Certain statements made in this announcement are forward-looking statements. Such statements are based on current expectations and are subject to a number of risks and uncertainties that could cause actual results to differ materially from any expected future results in forward-looking statements.
This announcement does not constitute an invitation to underwrite, subscribe for or otherwise acquire or dispose of any Burberry Group plc shares. Past performance is not a guide to future performance and persons needing advice should consult an independent financial adviser.
View the full Interim Results Announcement in PDF format.
 |
To view PDFs you need the Adobe Reader. This program is available free of charge from the Adobe website. |