Accessories and emerging markets boost Burberry

26th May 2011 07:05

Strong sales of non-clothing items such as leather handbags helped the luxury fashion group Burberry to a sharp rise in sales in the year to 31 March.Adjusted pre-tax profit rose by 39% from the previous year to £298m on revenue that climbed by 27% to £1.5bn. The full-year dividend has been increased by 43% to 20p.Burberry said non-apparel revenue climbed by 35% to account for 40% of sales, up from 38% the previous year. Large leather goods contributed half of non-apparel retail sales, said the company, which also notes that men's items account for just over 10% of non-apparel retail sales "highlighting the opportunity in this category over time."Emerging markets such as China, Russia and Turkey were also a strong growth driver, accounting for 16% of sales, up from 11% the previous year. The restructuring of the company's Spanish operations, which were hit hard by that country's economic difficulties, has largely been completed, the company said."While mindful of global macro challenges in the current year, we will continue to invest to drive growth across our portfolio by channel, region and product," said chief executive Angela Ahrendts.In the current year, Burberry said it expects its wholesale revenues excluding China to rise by a mid-teens percentage.The company is planning on capital expenditure of £180m to £200m in the current year, against £108m in the previous year. New space is to grow by 12% to 13%.---RG