Burberry to resume shareholder payouts
BURBERRY’S profits are almost back at pre-pandemic levels after double-digit growth in Asia and America.
And the fashion giant has reinstated the dividend, ditched to save cash in the face of Covid. It is paying an interim 11.6p per share, up from 11.3p last time.
It said its pre-tax profits had rocketed 162.6 per cent to £191.2million over the first half. That compares with £192.6million in 2019.
Burberry said profitability had improved after it cut discounts. Fullprice sales rose 40 per cent in China, 80 per cent in South Korea and doubled in the Americas.
It added its revamp of 15 stores was attracting “higher spending clientele”.
Additionally, it said that its revenues over the six months to the end of September had grown 38.2 per cent to £1.2billion – just £68.6million short of where they were prior to coronavirus.
Gerry Murphy, the chairman of Burberry, said: “We have made strong progress in the half. Full-price sales are growing at a double-digit percentage, driving margin expansion and strong free cash generation.
“We are seeing an acceleration in performance in countries less impacted by travel restrictions and we are confident of achieving our medium-term goals.”
Last month Burberry said Versace chief Jonathan Akeroyd would succeed Marco Gobetti, who is quitting to take the helm at Salvatore Ferragamo.
Mr Murphy said: “I would like to thank Marco for his vision and leadership of Burberry’s transformation. We are very excited that Jonathan Akeroyd is joining as our new CEO in April.”
Elsewhere, Ted Baker said thanks to demand for suits and formal wear, revenues were growing again and its losses falling. Revenues rose 17.6 per cent to £199.3million, while its pre-tax losses fell 70.7 per cent to £25.3million.