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Burberry reports record revenue and profits



The UK luxury fashion brand, Burberry, has reported an increase in annual revenue and profits.
The company posted adjusted pre-tax profits for the year to March at £461m. This is an increase of 8% on the £428m a year ago. Revenue increased by 17% to reach £2.33bn. Both figures are record annual results.

The company warned that next year’s profits may be affected by unfavourable exchange rates and higher investment may affect the margins. If exchange rates remained at the current rate, overall profits will be affected negatively next year. Margins have increased over the past three years, but this may be affected negatively by customer investment and digital platforms.

The company’s overall retail sales increase was 15% and formed 70% of total revenue, BBC says.

The company stated that the move of its beauty business to direct operation from license, and the integration of digital with physical presence is what boosted sales.

Burberry has a strong brand in China and is focusing on entering the Japanese market, with licences expiring in June next year. The company is targeting huge revenue increases in Japan by 2017.

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