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Apr 19, 2011
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Burberry Q4 beats consensus, see profit at top-end

By
Reuters
Published
Apr 19, 2011

April 19 - British luxury group Burberry said a strong finish to the year delivered a 33 percent rise in underlying fourth-quarter sales and would result in full-year profit at the top end of expectations. The 155-year-old maker of raincoats and handbags said on Tuesday it made 390 million pounds ($632.8 million) of revenues in the three months ended March, excluding its restructuring Spanish arm.

Burberry
Burberry Spring Summer 2011 campaign

That compared with an average forecast of 357 million pounds in a Reuters poll of nine analysts.

Burberry, best known for its camel, red and black check, reiterated its January view that it expected full-year profits at the top end of analysts' expectations, which at that time ranged from 250-290 million pounds.

The company said it was planning a 12-13 percent increase in average selling space in its 2011-2012 financial year, excluding stores acquired in China.

Chief Executive Angela Ahrendts said: "Burberry had a strong finish to the year, driven by our design, digital marketing and retail initiatives, as well as good early progress in China.

"While the luxury industry faces global challenges in the year ahead, we remain confident in our team's ability to outperform, underpinned by the consistent execution of our key strategies."

Like-for-like retail sales in the fourth quarter increased 11 percent, with a consistently strong performance in Asia Pacific, it said.

Burberry shares have surged more than sixfold over the past 2-1/2 years after the group slashed costs in the global economic downturn and then rode a rapid recovery in the luxury sector, driven by demand from Chinese shoppers and tourists.

The group has also benefited from speculation it might be a bid target in a sector hotting up with deals.

The stock hit a record high of 1,235 pence in March, but slipped back slightly after a devastating earthquake in Japan raised fears about in a dip in demand from the world's third-biggest luxury goods market.

Burberry shares closed at 1,146 pence on Monday, valuing the business at about 5.0 billion pounds.

(Reporting by Paul Sandle; Editing by Matt Scuffham)

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