• Q4 revenues rose 32% to GBP390m
  • H1 revenues up 30% to GBP860m
  • To step up retail expansion 

Luxury fashion house Burberry Group Plc today (19 April) said it expects full-year pre-tax profit to be at the top end of market expectations after booking a bumper end to its financial year.

It is also planning to increase its retail selling space by 12-13% in the year ahead, after revenues rose 32% to GBP390m (US$635.7m) in the three months to 31 March helped by strong sales of its Prorsum and Burberry London lines.

"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," said CEO Angela Ahrendts.

"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."

In the second half of its financial year, the luxury house reported total revenues of GBP860m, up 30% on an underlying basis (calculated at constant exchange rates). Retail revenues were up 42% to GBP596m, with same-store sales rising by 13%.

In China, where Burberry has taken over the operations of its former franchisee, around 30% comp growth was achieved. And the rest of Asia Pacific continues to put in a consistently strong performance, with double-digit growth led by Hong Kong and Taiwan.

Wholesale revenue was up 14% at constant exchange rates to GBP214m, helped by a rise in in-season orders and higher fulfilment rates.

And total licensing revenue in the second half fell by 5% on an underlying basis to GBP50m, in line with guidance as two product licences came to an end.

Looking ahead, Burberry is planning to add another 20-25 mainline stores with a bias towards China, Latin America and the Middle East.