Burberry Profit Tops Estimates as Beauty Unit Forges Solo Path
2014-05-21 06:15:49.782 GMT
By Andrew Roberts
May 21 (Bloomberg) -- Burberry Group Plc, the U.K.’s
largest luxury-goods maker, reported full-year profit that
topped analysts’ estimates as it took control of its beauty
business and focused on outerwear.
Adjusted pretax profit rose 8 percent to 461 million pounds
($776 million) in the 12 months ended March 31, London-based
Burberry said today in a statement. Analysts predicted 450
million pounds, according to the average of 18 estimates.
Burberry is partnering with Amazon.com Inc. and Alibaba
Group Holding Ltd.’s Tmall.com for online sales to boost revenue
from Brit Rhythm fragrances and other beauty products. The
company also plans to take control of its Japanese business when
a license expires there next year. Chief Executive Officer
Christopher Bailey will update analysts on Burberry’s plans for
its beauty unit and Japan at a presentation today.
Burberry repeated today that wholesale revenue from beauty,
which it took in-house last year, will grow about 25 percent at
constant exchange rates in fiscal 2015. The company, which has
hired executives from companies including Procter & Gamble Co.
and Chanel to help manage the business, aims to be a top-10
beauty brand, which would require a more than fivefold increase
in sales.
The pound’s appreciation against other currencies could
hurt 2015 profit, Burberry also said last month. New space will
contribute “low to mid single-digit percentage” growth to
total revenue, the company said at the time.
Burberry shares fell 0.1 percent to 1,515 pence in London
yesterday, giving the maker of 3,995-pound trenchcoats a market
value of 6.7 billion pounds.
For Related News and Information:
Burberry Goes Solo in Perfume Challenge With Amazon Deal: Retail
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Top Stories: TOP <GO>
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Top Retail Stories: TOP CON <GO>
To contact the reporter on this story:
Andrew Roberts in Paris at +33-1-5365-5015 or
aroberts36@bloomberg.net
To contact the editors responsible for this story:
Celeste Perri at +31-20-589-8505 or
cperri@bloomberg.net
Robert Valpuesta, Kim McLaughlin
2014-05-21 06:15:49.782 GMT
By Andrew Roberts
May 21 (Bloomberg) -- Burberry Group Plc, the U.K.’s
largest luxury-goods maker, reported full-year profit that
topped analysts’ estimates as it took control of its beauty
business and focused on outerwear.
Adjusted pretax profit rose 8 percent to 461 million pounds
($776 million) in the 12 months ended March 31, London-based
Burberry said today in a statement. Analysts predicted 450
million pounds, according to the average of 18 estimates.
Burberry is partnering with Amazon.com Inc. and Alibaba
Group Holding Ltd.’s Tmall.com for online sales to boost revenue
from Brit Rhythm fragrances and other beauty products. The
company also plans to take control of its Japanese business when
a license expires there next year. Chief Executive Officer
Christopher Bailey will update analysts on Burberry’s plans for
its beauty unit and Japan at a presentation today.
Burberry repeated today that wholesale revenue from beauty,
which it took in-house last year, will grow about 25 percent at
constant exchange rates in fiscal 2015. The company, which has
hired executives from companies including Procter & Gamble Co.
and Chanel to help manage the business, aims to be a top-10
beauty brand, which would require a more than fivefold increase
in sales.
The pound’s appreciation against other currencies could
hurt 2015 profit, Burberry also said last month. New space will
contribute “low to mid single-digit percentage” growth to
total revenue, the company said at the time.
Burberry shares fell 0.1 percent to 1,515 pence in London
yesterday, giving the maker of 3,995-pound trenchcoats a market
value of 6.7 billion pounds.
For Related News and Information:
Burberry Goes Solo in Perfume Challenge With Amazon Deal: Retail
NSN N5VKSM6JTSER <GO>
Luxury Market May Expand 18% in Three Years, Altagamma Says
NSN N3HSOI6JIJV5 <GO>
Top Stories: TOP <GO>
Burberry Peer Product Comparisons: BRBY LN <Equity> PPC <GO>
Top Retail Stories: TOP CON <GO>
To contact the reporter on this story:
Andrew Roberts in Paris at +33-1-5365-5015 or
aroberts36@bloomberg.net
To contact the editors responsible for this story:
Celeste Perri at +31-20-589-8505 or
cperri@bloomberg.net
Robert Valpuesta, Kim McLaughlin