GREEN PEBBLES

Burberry Group PLC posted strong financial resuts with revenue up 24% to £1,857m.

All regions were up by double-digits, with the Asia Pacific being the largest at 41% retail/wholesale revenue, Europe at 15%, Americas also at 15% and the Rest of the World at 31%.

Non -apparel grew 22% underlying to remain Burberry's largest product division at 39% retail/wholeslae revenue.  Significant growth was also seen in womenswear and menswear at 27% and 26% respectively.

Angela Ahrendts, Burberry Group's Chief Executive Officer, commented:

"Burberry has completed another successful year, with revenue up 24% and adjusted profit before tax up 26%.  An intense focus by our global teams on business, brand and culture in recent years has resulted in a strong foundation across channels, regions and products.  While we remain vigilant about the external environment, we will continue to invest in front-end opportunities within our brand, digital and retail strategies, to drive sustained, profitable growth andenduring customer engagement over the long term."

Burberry has continued to evolve its store portfolio, opening 23 mainline stores and 25 concessions during the year, while closing 10 and 16 respectively.  The openings included the first larger format stores in Hong Kong, Paris and Taipei to better showcase the brand, product and digital innovation. 

About a net 15 mainline stores are planned to open in FY 2012/13, biased towards larger format stores.  These include the new, relocated store in Regent Street, London, the rebuilt store in Chicago and Pacific Place in Hong Kong.  Capital expenditure for FY 2012/13 is planned at £180-200m (2012: £153m).

Burberry continues to invest in high growth luxury markets, with three directly-operated stores in Brazil, two in Mexico and seven in India.  These markets are still in investment phase.  Between five to ten new stores are planned for Central and Latin America in FY 2012/13, with further strengthening of the brand presence and operational capabilities.

Despite the difficult financial climate particularly in Italy and Europe in general, TOD'S Group posted what it described as 'outstanding' consolidated sales results in 2011 at 893.7 million Euros in 2011, up 13.5% from 2010.

Out of the group's brands it was ROGER VIVIER's revenues which stood out against the rest posting an increase of +67.9% (36.5 million Euros in 2011), showing an acceleration of the growth in the fourth quarter of 2011, compared to the already brilliant results of the previous quarters, thus confirming what the Group claimed to be  "the undisputed potential of the brand".

 

Roger Vivier Store in 29, Rue du Faubourg Saint-Honoré

Image via Paris.com

This was followed by TOD'S its revenues totalling 487.6 million Euros in 2011, up +19.8% from the previous year, and then by HOGAN's revenues which at  280.9 million Euros in 2011, were up +4.7% from the previous year. The Group explained HOGAN's performance in the last few months of 2011, the brand’s performance was affected by the tough situation of the Italian market, which is still very important for the brand.

Following the opening of its first three directly operated stores in mainland China, in September 2011, the brand is now pushing its international expansion, with major focus on the Asian markets, which the Group believes  offers a huge potential for growth.

The only brand which saw a downturn in sales at 87.8 million Euros in 2011 at -2.0 was FAY which the Group believed  reflected the selective distribution strategy, aiming at preserving the exclusivity and high positioning of the brand in the Italian market, which is still the major market for the brand.

Fay Spring Summer 2012 Campaign

Image via hiddenbeauty-perla86

Generally, one can see sales growth in most of the Groups markets even in Italy which saw a +5% growth, Europe (excluding Italy) +11.2 and North America certainly showed a strengthening in growth at +17%  but not surprisingly it was the Asian markets and the rest of the world which saw the greatest jump at 38.1%.

Diego Della Valle, Chairman and CEO of the Group, commented :

“2011 sales figures confirm, once more, the resiliency of our Group, which registered a solid double-digit sales growth, even in a challenging environment. Customers remain loyal to our products, which are more and more appreciated for their superior quality and timeless image. Our DOS posted very strong results, in all regions, with an excellent performance in the US and Asian markets, where Tod’s enjoys a strong brand awareness. Considering the favourable sales mix, I’m confident that also profits will post an outstanding performance.”