Burberry FY profit drops 12%

19th May 2009 07:37

High-end fashion retailer Burberry revealed a 12% decline in full year profit after a particularly tough second half. Adjusted profit before tax fell to £175m for the year ended 31 March 2009 from £200m the same time a year earlier. Total revenue was up 21% at £1.2bn. The full year dividend has been maintained at 12p. "2008/09 was one of the most challenging years the luxury sector has ever faced, especially in the second half," said Burberry in a company statement. Total licensing revenue in the year declined by 9% on an underlying basis, in line with guidance. The group said it had taken, "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." "Entering the new year, we believe Burberry is best positioned to capitalise on opportunities which will deliver sustainable long-term growth," the group said. Burberry projects wholesale revenue at constant exchange rates in the six months to 30 September 2009 to be down around 15% from the same time a year before.