Tuesday, British luxury fashion company Burberry Group Plc (BRBY.L) reported a loss for the full year, reflecting higher operating expenses, restructuring costs and impairment charges, but revenues grew 21%. Further, the group maintained its full-year dividend at 12 pence per share.
Burberry posted loss before taxation of GBP 16.1 million for the year ended 31 March 2009, compared with profit of GBP 195.7 million a year earlier.
Loss attributable to equity shareholders was GBP 6 million or 1.4 pence per share, compared to a profit of GBP 135.2 million or 30.5 pence per share in the last year. The recent year included restructuring costs of GBP 54.9 million and non-cash impairment and other charges of GBP 135.8 million, and one-off tax credits of GBP 32.6 million.
Adjusted profit before tax was GBP 174.6 million, compared to GBP 200.2 million a year earlier, reflecting a decline in gross margin as reduced consumer demand led to a lower proportion of full price sales. Adjusted earnings per share were 30.2 pence, up from 31.6 pence in the prior year.
Revenue advanced 21% to GBP 1.2 billion from GBP 995.4 million in the previous year.
Revenue by region, Europe, Middle East and Africa, or EMEA, had revenue of GBP 443.6 million, compared to GBP 364.5 million in the last year. Spain posted revenue of GBP 163.9 million, compared with GBP 172.8 million in the previous year. Revenues for Americas were GBP 302 million, compared to GBP 231.6 million a yea ago. Asia Pacific's revenue was GBP 292 million, compared with GBP 226.5 million in the prior year.
Retail sales for the year grew by 30% on a reported basis and 14% on an underlying basis, contributing over half of total revenue for the first time. Wholesale revenue, which contributed about 40% of total sales in the year, rose by 15% on a reported and 2% on an underlying basis. Comparable store sales increased 1% for the year.
Net operating expenses amounted to GBP 675.7 million, compared to GBP 416 million in the prior year.
Burberry stated that it took rapid action to mitigate the impact of the economic slowdown, aggressively reducing inventory, executing a GBP 50 million global cost efficiency programme, resulting in a strong financial position and operating profit in line with guidance. Adjusted operating profit was GBP 180.8 million, compared with GBP 206.2 million a year ago.
Moving ahead, Burberry projects wholesale revenue at constant exchange rates in the six months to 30 September 2009 to be down around 15% on a comparable basis, while, in the year to March 2010, Burberry anticipates reported licensing revenue to increase year-on-year and underlying licensing revenue is projected to decline by between 10% and 15%.
The group now expects capital expenditure for 2009/10 to be around GBP 60 million, excluding Japan, as Burberry takes advantage of better real estate terms from developers around the world.
Additionally, the group proposed a final dividend in respect of the year to 31 March 2009 of 8.65 pence per share. The final dividend would be paid on 30 July 2009 to shareholders on the register at the close of business on 3 July 2009.
BRBY.L is currently trading on London stock exchange at 388.25 pence, down 3.24%.
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