Burberry reports record annual sales and profit

21st May 2014 07:03

- Record sales and profit- Retail sales drive growth- Dividend raised 10 per centBurberry's annual revenue rose 17 per cent to 2.3bn pounds, boosted by strong retail sales.The luxury fashion house reported adjusted pre-tax profit of £461m in the year to end of March 2014, up 8% on the previous year. "Burberry delivered record sales and profit in 2013/14," said Christopher Bailey, who was appointed as Chief Executive on May 1st. "The strength of this performance reflects sustained strategic focus, continued investment, disciplined execution and outstanding brand momentum during the year."Retail sales continued to drive growth, rising 15% on the prior year and accounting for 70% of total revenue. Improvements in store productivity and online sales offset weak in-store footfall. During the period Burberry opened 25 mainline stores and closed 17.Wholesale accounted for 27% of revenue with sales up 2%, excluding beauty, as the group opened five new franchise stores globally. Including beauty, sales rose 32%.Last April the company began directly operating its beauty division following a "complex and challenging transitional period".Accessories revenue was up 12%, contributing 36% of total sales. Licensing revenue increased 2%, accounting for 3% of overall revenue, driven by royalty income from Japan. "While mindful of macroeconomic uncertainties and currency headwinds, we remain focused on the things we can control and confident of driving sustainable future growth, benefiting all our stakeholders," Bailey concluded.The dividend was raised 10% to 32p.RD