Burberry share price: Group delivers robust full-year results

on May 21, 2014
Updated: Apr 9, 2020

iNVEZZ.com, Wednesday, May 21: Burberry Group (LON:BRBY) has released its preliminary results for the year ended March 31, 2014.

The British fashion retailer said in a regulatory statement today that retail, wholesale and digital initiatives had delivered a 17 percent increase in revenue to £2.33 billion, with adjusted profit before tax up eight percent to £461 million. Both figures were in line with analysts’ consensus forecast and represented records for annual results.
The company raised its full-year dividend by 10 percent to 32p a share and said it is moving from a 40 percent payout ratio to 50 percent over the next three years.

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Burberry’s Chief Creative and Chief Executive Officer, Christopher Bailey commented on the group’s performance: “Burberry delivered record sales and profit in 2013/14. The strength of this performance reflects sustained strategic focus, continued investment, disciplined execution and outstanding brand momentum during the year.”
The results are the first since Bailey officially succeeded Apple bound Angela Ahrendts on May 1, though his appointment was announced in October (Apple’s share price rises on hiring of Burberry’s Ahrendts). The newly-appointed CEO pledged to press ahead with the broad strategy laid out by his predecessor, which includes focusing on expansion in Japan, the second biggest luxury market in the world, and beauty products.

“As we enter a new chapter, our teams are united and energised by the opportunities ahead – from unlocking Japan, to accelerating Beauty and further integrating the physical and digital to deliver distinctive experiences,” Bailey said.

Burberry flagged the potential impact of foreign exchange movements on the translation of profit into sterling. With Chinese consumers a key audience for the brand, Burberry has struggled with the strength of sterling versus the yuan and other currencies. Sterling has risen 1.65 percent against the US dollar since the start of the year.
“While mindful of macroeconomic uncertainties and currency headwinds, we remain focused on the things we can control and confident of driving sustainable future growth, benefiting all our stakeholders,” Bailey remarked.

**Burberry share price opens lower**
Burberry’s share price closed yesterday’s trading session almost one percent down at 1,515.00p. Today the stock opened marginally lower and as of 08:02 BST, it was changing hands at 1,513.00p – 0.33 percent down on the day.
Of the 21 analysts projecting 12 month price targets for Burberry for The Financial Times, the median target is 1,620p, with a high estimate of 2,147p and a low estimate of 900.00p.
**As of 08:02 BST, buy Burberry shares at 1,513.00p**
**As of 08:02 BST, sell Burberry shares at 1,503.00p.**


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