Burberry posts robust results with revenue of £2.5bn, up 11% underlying and adjusted profit before tax of £456m, up 7% underlying

Our intense focus on core heritage British-made trench coats and cashmere scarves was a principal driver of the year's growth, alongside the investment in digital, which continued to outperform across all regions

Strong underlying financial performance
  • Revenue £2.5bn, up 11% underlying, up 8% at reported FX
  • Adjusted profit before tax £456m, up 7% underlying
    - After £38m adverse exchange rate impact, down 1% at reported FX
  • Reported profit before tax £445m (2014: £444m)
  • Net cash up £150m
  • Full year dividend 35.2p, up 10%
Ongoing investment drove continued brand and business momentum
  • Retail sales up 14% underlying
  • Comparable sales growth of 9%
    - Double-digit % growth in Americas and EMEIA
    - Mid single-digit % growth in Asia Pacific, given disruption in Hong Kong
  • Global team's focus on heritage trench coats and scarves drove growth
  • Investment focused in flagship markets including
    - Store openings in Los Angeles and Tokyo
    - Events in Shanghai and Los Angeles, celebrating our British heritage
  • Continued investment in digital service, data analytics and owned and third party platforms led to digital again outperforming in all regions

Expected exchange rate benefit in FY 2016 now reduced to about £10m at current rates

Christopher Bailey, Chief Creative and Chief Executive Officer, commented:

'We are pleased to report a strong full year performance, with revenue up 11% and adjusted profit up 7% underlying. Against a challenging external backdrop, our global team has focused ever more intensely on our core, including celebrating the British-made products that are our brand signature and extending our online and offline integration.

At this early stage of the year, we are seeing increased uncertainty in some markets. Against this background, we will continue to manage our business dynamically - capitalising on the significant opportunities we have by channel, region and product to create long-term shareholder value.'

All metrics and commentary in the Group Financial Highlights and Business and Financial Review exclude adjusting items unless stated otherwise.
 Adjusting items are:
- A charge of £14.9m in reported operating expenses being the amortisation of the fragrance and beauty licence intangible asset (2014: £14.9m)
- Put option liability finance income of £3.7m in the reported net finance income relating to the third party 15% economic interest in the Chinese business (2014: a charge of £1.7m)
Details of adjusting items are contained in Note 7 of the Notes to the Financial Information.
 Underlying performance is presented in this announcement as, in the opinion of the Directors, it provides additional understanding of the ongoing performance of the Group.

Underlying performance is calculated before adjusting items and removes the effect of changes in exchange rates compared to the prior period. This takes into account both the impact of the movement in exchange rates on the translation of overseas subsidiaries' results and also now on foreign currency procurement and sales through the Group's UK supply chain.

Certain financial data within this announcement have been rounded.

Enquiries
Burberry
Carol Fairweather Chief Financial Officer 020 3367 3524
Fay Dodds VP, Investor Relations
Julian Payne VP, PR and Corporate Relations 020 3428 8975
Brunswick 020 7404 5959
Nick Claydon
Laura Cummings

- There will be a presentation today at 9.30am (UK time) to investors and analysts at Horseferry House, Horseferry Road, London, SW1P 2AW
- The presentation can be viewed live on the Burberry website www.burberryplc.com and can also be accessed live via a dial-in facility on +44 (0)20 3003 2666
- The supporting slides and an indexed replay will be available on the website later in the day
- Burberry will issue its First Quarter Trading Update on 15 July 2015
- The AGM will be held on 16 July 2015
 Certain statements made in this announcement are forward-looking statements. Such statements are based on current expectations and are subject to a number of risks and uncertainties that could cause actual results to differ materially from any expected future results in forward-looking statements. Burberry Group plc undertakes no obligation to update these forward-looking statements and will not publicly release any revisions it may make to these forward-looking statements that may result from events or circumstances arising after the date of this document. Nothing in this announcement should be construed as a profit forecast. All persons, wherever located, should consult any additional disclosures that Burberry Group plc may make in any regulatory announcements or documents which it publishes. All persons, wherever located, should take note of these disclosures. This announcement does not constitute an invitation to underwrite, subscribe for or otherwise acquire or dispose of any Burberry Group plc shares, in the UK, or in the US, or under the US Securities Act 1933 or in any other jurisdiction. Burberry is listed on the London Stock Exchange (BRBY.L) and is a constituent of the FTSE 100 index. ADR symbol OTC:BURBY. BURBERRY, the Equestrian Knight Device and the Burberry Check are trademarks belonging to Burberry which are registered and enforced worldwide.
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