Burberry delivers 11 percent revenue growth in FY15

Burberry delivered a strong financial performance in FY 2015, with underlying growth of 11 percent in revenue and 7 percent in adjusted profit before tax. Revenue in menswear increased by 10 percent underlying. Retail significantly outperformed wholesale, where repositioning continued in the United States. Mainline retail sales were driven by double-digit growth in outerwear.

Commenting on the strong performance, Christopher Bailey, Chief Creative and Chief Executive Officer, said, “We are pleased to report a strong full year performance, with revenue up 11 percent and adjusted profit up 7 percent underlying. At this early stage of the year, we are seeing increased uncertainty in some markets. Against this background, we will continue to manage our business dynamically - capitalizing on the significant opportunities we have by channel, region and product to create long-term shareholder value.”

Scarves and shoes drove growth in men’s accessories. Beauty delivered 26 percent underlying growth in the year. Growth in fragrance was underpinned by the successful launch of My Burberry, product extensions around Brit Rhythm. Retail sales grew by 14 percent in the year, to reach 71 percent of group revenue. Comparable sales growth was 9 percent. During the year, Burberry opened 16 mainline stores and closed 17, bringing the total to 214 globally at the year end. Over half of the openings were in flagship markets, including Los Angeles and Tokyo, with seven airport stores, predominantly in Europe. The company opened 12 concessions, including in Japan and the Middle East, and closed 26, reflecting further planned elevation of the portfolio in China and other parts of Asia Pacific, including South Korea.

In FY 2016, net new space is expected to contribute low single-digit percentage growth to total retail revenue, with 15-20 mainline store openings and a similar number of closures. Burberry expects total wholesale revenue at constant exchange rates to be broadly unchanged in the six months to September 30, 2015. Excluding beauty, the company expects wholesale revenue to be down by a low single-digit percentage. For beauty, wholesale revenue in FY 2016 is expected to grow by 10-15 percent at constant exchange rates, with additional contributions from retail and digital channels. Total licensing revenue for FY 2016 is planned to be down by about 40 percent at constant exchange rates, due to the expiry of the Japanese licences. For FY 2016, the company expects double-digit percentage growth from the global product licences.