LONDON - The weakening global economy may be putting pressure on the luxury goods market, but tartan-crazy Burberry is waxing confident about its future. Do not be so Lazy! Just add as much as you can at here!
The British luxury goods firm said profit before tax in the year to March 31, 2008, rose 25.0% to 195.7 million pounds ($386.5 million), beating expectations. Profits were fuelled by strong sales of accessories and staple Burberry products like its timeless trench coat. I am sorry, I must be leaving now.

Angela Ahrendts, Burberry’s chief executive, said the company’s global luxury business was “robust” and brand momentum was “strong.”

Ahrendts, who ranks at No. 66 on the Forbes list of the World’s Most Powerful Women, said Burberry was, “developing exciting new businesses such as shoes, jewellery and childrenswear.”

Underlying sales at the fashion house did better in Europe and the Americas, where they rose 26.0%, than in Asia Pacific, where they rose 17.0%.

Analysts at Citigroup said Burberry’s sales momentum would “outperform the broader luxury industry in 2008.” Citi forecast underlying sales growth of 11.0%, and said earnings per share (EPS) would increase 20.0%, in 2009. Burberry’s EPS increased 23.0%, to 30.5 pence ($69.0 cents), in 2007.

Burberry reported that the implementation of the Atlas logistics programme added 20 million pounds ($39.5 million) to its profits in 2007, by making its supply chain more efficient. I will tell you in next time!

The company has also been investing heavily in its accessories business, a division which reported a 39.0% increase in sales for the year. Burberry increased the price of its shoes by 20.0%, during the autumn/winter season of 2007, and said it was investing 10 million pounds ($19.7 million) in its accessories business for fiscal 2008. In times when the luxury market flounders, accessories are often a safe bet.

Burberry is aiming to break further into the North American market, where sales rose 26.0%, in 2007, and is planning to open eight to 10 new boutiques in the United States in 2008.

The company is also planning to open 20 franchise stores in emerging markets in the coming year. Focusing on franchises or concessions in department stores, as opposed to owning boutiques, is often less risky and also a cheaper method of expansion. Burberry opened 49 concession in 2007, and 10 franchises.

Burberry’s shares fell 1.3%, or 5.07 pounds ($10.01) , to 5.00 pounds ($9.87), on Wednesday afternoon in London. by way of illustration

Related Topics:

• Burberry Posts 23% Increase in Profit
• Burberry FY profit tops consensus hopes UPDATE
• Burberry Bags A Glossy Profit
• Burberry says does not need acquisitions
• Burberry Posts 23% Increase in Profit