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(Sharecast News) - Burberry reported a rise in full-year profit on Thursday as revenues in the fourth quarter were boosted by a stronger Chinese market.
In the year to 1 April 2023, adjusted operating profit rose to £634m from £523m a year earlier, on revenue of £3.1bn, up 10%. Burberry said comparable store sales grew 7%.
In the fourth quarter, comparable store sales accelerated to 16% as growth in mainland China rebounded to 13% as Covid restrictions were lifted.
Burberry also said that the Europe, Middle East, India and Africa (EMEIA) region had an "excellent" year, with comparable store sales up 27% in FY23 and Q4 as it benefited from strong tourist growth, which more than doubled in the year.
The luxury retailer hailed a strong performance across core outerwear and leather goods categories. Leather goods comparable store sales rose 12% in FY23 and 15% in the final quarter, while outerwear saw a 7% jump in FY23 and 30% in Q4.
Burberry said it was maintaining FY24 and medium-term targets, "while mindful" of the macroeconomic and geopolitical environment.
Chief executive Jonathan Akeroyd said: "We have delivered a strong financial performance, supported by good progress in our core leather goods and outerwear categories, with revenue accelerating in the fourth quarter as growth rebounded in Mainland China.
"While the external environment remains uncertain, I am confident we can achieve our FY24 and medium-term targets as we focus on executing our plan to realise Burberry's potential as the modern British luxury brand."
At 0915 BST, the shares were down 6% at 2,366p.
Russ Mould, investment director at AJ Bell, said: "The fact Burberry hasn't lifted its guidance for the new financial year after reporting such a strong set of results, and reference to it being 'mindful' of the macroeconomic and geopolitical environment, appear to have been the trigger for some investors to take profits in the stock, with the share price falling more than 6% on the latest news.
"Investors want companies to consistently beat expectations and if they can't do that, they will look elsewhere in the current market."
