Burberry swings to FY profit, chair Gerry Murphy to retire

(Sharecast News) - Burberry hailed a "meaningful inflection point" on Thursday as the luxury fashion brand said it swung to a full-year profit, and announced the retirement of chair Gerry Murphy.

In the year to 28 March, the company swung to a pre-tax profit of £49m from a loss of £66m a year earlier. Revenue dipped 2% to £2.4bn.

Burberry said it returned to comparable sales growth from the second quarter, with sequential improvement throughout the year and particularly strong performances in Greater China and the Americas, both of which saw double-digit growth in the final quarter of the year.

Group comparable store sales rose 5% in the fourth quarter, ahead of consensus expectations for 4.6% growth, with sales in Greater China and the Americas up 10%, helping to offset a decline of 2% in EMEIA (Europe, Middle East, India and Africa). Sales in Asia Pacific were 3% higher.

Reported diluted earnings per share came in at 5.9p versus a loss of 20.9p the year before.

Chief executive Joshua Schulman said: "This financial year marks a meaningful inflection point for Burberry. We've returned to profitable comparable sales growth, with a strong fourth quarter driven by momentum in Greater China and Americas. Our strategy is working and there are clear opportunities for further growth.

"As we look ahead, while mindful of the uncertain macroeconomic environment, our focus is on disciplined execution of Burberry Forward. With increased brand relevance and product authority, I am more confident than ever that Burberry is firmly positioned for long-term value creation."

The company also announced on Thursday that Chair Gerry Murphy - who joined the board in May 2018 and is therefore reaching the end of his nine-year tenure - has decided to retire in November. He will be succeeded by William Jackson, who is the founder and former chief executive and chair of Bridgepoint.

Burberry said that under his leadership, Bridgepoint became a "substantial" global investment organisation with interests in many consumer-facing businesses, including brands such as Pret a Manger and MotoGP.

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