Burberry year profits top expectations

Reuters, Tuesday 18 Jan 2011

Burberry's revenue attained $750 million in last quarter of 2010 and beat forecasts with a 27 per cent increase

Burberry shares have soared 82 per cent in 2010
Burberry shares have soared 82 per cent in 2010. (Photo: Reuters)

British luxury goods group Burberry forecast full-year profit at the top end of market expectations, as it beat forecasts with a 27 per cent rise in third-quarter revenue, showing growth in all regions.

The 155-year-old maker of raincoats and handbags said on Tuesday revenue, excluding its restructuring Spanish business, rose to 470 million pounds ($750 million) in the three months to Dec. 31.

That compared with an average forecast of 434 million pounds ($696 million), according to a company poll of 11 analysts, and 362 million ($580 million) in the 2009 period.

Burberry, best known for its camel, red and black check pattern, said it saw strong consumer demand in both its retail and wholesale divisions, with double-digit growth across all product divisions.

"As a result, we now expect adjusted profit before tax for the current financial year to be at the top end of market expectations," said chief executive Angela Ahrendts.

"Ongoing initiatives in retail, digital, product development and new markets underpin our confidence in the future."

Burberry shares have surged 82 per cent over the past year, periodically lifted by bid speculation.

The stock closed at 1,059 pence on Monday, valuing the business at 4.6 billion pounds ($7.3 billion).

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