Luxury fashion retailer Burberry has reported a 14% rise in adjusted full-year pre-tax profits to £428m after a strong performance in Asia.
Burberry said reported pre-tax profit was down 4% to £351m in the year to March 31 due to the cost of the termination of a fragrance licensing agreement. The result comes after a surprise mid-year profit warning in September after sales in China slowed.
It also warned profits will be lower in the first half of the new year than last year.
The retailer said first-half profit would not reach last year’s levels due to a reduction in its wholesale business in favour of retail. Burberry reported profits of £173m in the first half to the end of September 2012.
Total full-year group sales rose 8% to £2bn. Total retail revenue increased 12% in the year with wholesale sales down 1%. Retail accounted for 75% of revenue in the second half.
Retail sales rose to £1.4bn from £1.3bn the year before while wholesale fell from £478m in the previous year to £472m.
The retailer enjoyed its strongest growth in the Asia-Pacific region where sales rose 13% and now represent 35% of sales after strong sales in China and Hong Kong.
The retailer said sales in Europe and the Americas both rose by 6%.
Burbbery opened 23 mainline stores in the year including in flagship markets such as London, Chicago and Hong Kong.
Burberry chief executive Angela Ahrendts said: “Finishing the year with a strong retail performance both online and offline, Burberry achieved record revenue and profit in 2012/13.
“Looking ahead, although the macro environment remains uncertain, Burberry is well positioned with opportunity by channel, region and product. With the integration of beauty in April, we have added another exciting growth platform.”
She added: “Our brand momentum, proven strategies and closely connected global team provide confidence in Burberry’s future performance.”