Burberry eyes store expansion after posting full year profits

24 May 2012 (Last Updated May 24th, 2012 07:00)

UK-based luxury clothing retailer Burberry plans to expand its large format stores, after posting huge profits for the full year ended 31 March 2012.

UK-based luxury clothing retailer Burberry plans to expand its large format stores, after posting huge profits for the full year ended 31 March 2012.

Burberry's adjusted profit before tax for the year was pegged at £376m, up 26% over £298m in the previous fiscal, while its reported profit before tax was up 24% to £366m over £296m in 2011.

After clocking double-digit growth, both by product division and the region, the retailer is now set to open more of large format stores in its flagship markets such as London, Chicago and Hong Kong.

Burberry chief executive officer Angela Ahrendts said that an intense focus by the group's 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 and enduring customer engagement over the long term," Ahrendts added.

The retailer also plans to expand retail space by 12-14%, with a proposed capital expenditure of £180-200m in the on-going fiscal 2012-13.

Burberry has opened 23 mainline stores during the fiscal year ended 31 March 2012, with first flagships unveiled in Hong Kong, Paris and Taipei markets.

Total revenue of the group was up 24% to £1,857m compared to £1,501m in 2011, while retail/wholesale revenue and adjusted operating profit surged 25% and 31% respectively.