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Burberry Profits Up 26.8% in 2013-14

Christopher Bailey delivers first financial results as chief executive officer.

LONDON — Burberry Group’s net profit climbed 26.8 percent to 322.5 million pounds, or $512.8 million, in the 2013-14 fiscal year, due partly to lower adjusted items compared with the previous period and on the back of a double-digit rise in revenue.

 

Revenue in the 12-month period rose 16.6 percent to 2.33 billion pounds, or $3.7 billion, with retail sales and men’s accessories in particular among the drivers of growth.

 

All dollar figures have been converted from the pound at average exchange rates for the year to March 31.

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Chief creative officer Christopher Bailey, in his first public statement since taking up the additional role of chief executive on May 1, said Wednesday that Burberry delivered “record” sales and profit in the year. 

 

“As we enter a new chapter, our teams are united and energized by the opportunities ahead, from unlocking Japan, to accelerating beauty and further integrating the physical and digital,” he said.

 

Bailey said the company remained “mindful” of macroeconomic uncertainties and currency headwinds, but was focused on the things it could control and was confident of driving sustainable growth.

 

Looking ahead, Burberry said it is targeting mid-teens percentage growth from its new in-house beauty business from the 2015-16 year. It said growth would come via directly operated stores and those of “key partners,” from burberry.com and with third-party digital players, and in travel retail, where the company is “significantly underpenetrated.”  

 

Burberry also said that product development is underway in makeup, and the evaluation of the Burberry Beauty Box retail concept continues, both as a retail format and a foundation for beauty counters.

 

With regard to Japan, where Burberry has terminated its license agreement with Sanyo as of June 2015, the company said it plans to add freestanding stores and department store concessions, while leveraging owned digital platforms and those of third parties. 

 

Burberry said its committed store openings include Omotesando and Shinjuku in Tokyo, and Osaka. There are plans to add about 10 concessions a year in the 2015-16 and 2016-17 periods. As reported earlier this week, Burberry has inked a new license with Sanyo for its Blue and Black labels, which will be owned by Burberry but not carry the brand’s name.