Burberry to beat profit expectations

20th Apr 2010 06:59

Luxury fashion label Burberry expects to post pre-tax profits ahead of expectations for the year to March 31 after shoppers rushed to stock up on fashions for the coming spring and summer.The outfitter famous for the checked pattern displayed on its clothing said sales totalled £327m in the fourth quarter, compared with analysts' estimates of about £310m, taking Burberry's sales for the half year period to £707m.'With a stronger finish to the year than we had anticipated in both retail and wholesale, we now expect Burberry to deliver adjusted profit before tax in the year just finished slightly above current market consensus,' said chief executive Angela Ahrendts.'Looking forward to 2010/11, while the pace and level of the global economic recovery remain unclear, we remain confident that our strategies will continue to build momentum in the business.'In the six months to March 31, sales from Burberry's own stores were up by 15% from the same period the previous year to £437m, with new shop floor space and strong demand for clothes for this spring and summer driving growth. Wholesale revenues fell by 6% to £217m, due to the closure of some accounts in Europe and weakness in Spain, where Burberry has a specially tailored collection that to be withdrawn after the coming winter.