by Samantha Conti
From WWD.COM
Second-half revenues at Burberry Group plc rose 31 percent to 860 million pounds, or $1.37 billion, from 657 million pounds, or $1.1 billion, boosted by retail sales in China and the outerwear category.
In a trading update, Burberry said fourth-quarter sales grew 32.2 percent to 390 million pounds, or $624 million, from 295 million pounds, or $472 million.
Meanwhile, licensing revenue in the first half fell 5.6 percent to 50 million pounds, or $80 million, from 53 million pounds, or $85 million, in line with guidance.
Burberry said growth from global product licenses was offset by the planned termination of both the Japanese leather goods license in 2010 and the final regional men's wear licenses. The company did not mention any possible impact on revenue from last month’s earthquake and tsunami in Japan.
Dollar figures have been converted at average exchange rates for their respective periods ending March 31, and exclude the results from Burberry’s discontinued, local business in Spain.
“Burberry had a strong finish to the year, driven by our design, digital marketing and retail initiatives, as well as good early progress in China,” stated chief executive Angela Ahrendts. “We expect adjusted profit before tax for the financial year 2010/11 to be around the top end of market expectations.”
Burberry released revenue figures only for the second half of the 2010-11 fiscal year.
In the current fiscal year, Burberry is projecting a 12-13 percent increase in average retail selling space, mainly in China, Latin America and the Middle East. In the first half of the current year, wholesale revenue is expected to increase by a “mid-single digit percentage” at constant exchange rates, the company said.
In the 2011-12 fiscal year, underlying licensing revenue from Japan is expected to be flat year-on-year, while the global fragrance, eyewear and timepieces product licenses are expected to deliver double-digit growth, Burberry said.
