Burberry profits soar as emerging markets shine

16th Nov 2010 07:08

Profits soared at luxury fashion label Burberry in the six months to September 30 as sales of non-clothing items such as handbags jumped and the company extended its reach in emerging markets including China and Brazil.Adjusted revenues (stripping out Burberry's discontinued Spanish business) were up by 21% from the same period the previous year to £641m. Adjusted pre-tax profits soared by 49% to £129m.While Burberry has had to restructure operations in Spain due to severe economic difficulties in that market, it has seen sales in emerging markets jump by 46%, having opened new stores in markets such as China, India, Brazil and Turkey.Non-apparel sales climbed by 26% to account for 40% of sales, led by 'large leather goods', Burberry said. The interim dividend has been lifted by 43% to 5p, in line with the company's 40% payout policy based on full-year adjusted earnings per share.Some 57% of Burberry's revenues came from its own shops, while 35% came from wholesales to other shops. Licensing revenues, most of which come from Japan, accounted for 8%.'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,' said chief executive Angela Ahrendts.