Burberry’s adjusted pre-tax profit rose 8% to £461m in its full year to March 31 as it targets growth in the Japanese market.
Sales soared 17% to £2.33bn over the year. Like-for-likes jumped 12% while retail and wholesale revenue advanced 19%. Outerwear, large leather goods and menswear were key growth drivers.
Burberry chief executive and chief creative officer Christopher Bailey said: “The strength of this performance reflects sustained strategic focus, continued investment, disciplined execution and outstanding brand momentum during the year.
“As we enter a new chapter, our teams are united and energised by the opportunities ahead – from unlocking Japan, to accelerating beauty and further integrating the physical and digital to deliver distinctive experiences. While mindful of macroeconomic uncertainties and currency headwinds, we remain focused on the things we can control and confident of driving sustainable future growth, benefiting all our stakeholders.”
Bailey, who succeeded Angela Ahrendts on May 1, has identified Japan, beauty, digital commerce and better serving the travelling luxury customer as its growth opportunities. It also intends to driving operating efficiencies and productivity gains.
The retailer’s Japanese licenses expire next year which the retailer said gave it a “significant opportunity” to build a growing and profitable business in the second largest luxury market in the world.
It currently has four stores and ten concessions in Japan, which generated revenue of about £25m and was break even in its last financial year.
Burberry plans to add more stores and department store concessions. It has committed to new sites in Omotesando and Shinjuku, Tokyo, and Osaka, and plans to add about ten concessions a year in its 2016 and 2017 financial years. By 2017, it is targeting over £100m of retail revenue and around £25m of profit.