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Burberry expects profits to top hopes as rich spend again

City A.M. Reporter
LUXURY goods group Burberry yesterday added to evidence the wealthy are spending freely again, forecasting annual profit slightly above market expectations and further progress next year.

Chief executive Angela Ahrendts said: “While the pace and level of the global economic recovery remain unclear, we remain confident that our strategies will continue to build momentum in the business.”

She said the 154-year-old maker of upmarket raincoats and handbags plans to drive growth by investing in new regions, such as Brazil and India, as well as new initiatives and digital commerce.

Prior to the update, analysts were forecasting an underlying pre-tax profit of £199m for the year to 31 March, versus £175m in the previous year.

Burberry , best known for its camel, red and black check, said underlying revenue increased six per cent to £707m in the six months to 31 March.

That compared with analysts’ consensus forecast of a rise of five per cent, a third-quarter increase of 12 per cent and a first-half decline of five per cent.

Hong Kong, the UK and the United Arab Emirates were the standout performers.