LONDON, United Kingdom — Burberry Group Plc, the U.K.’s largest luxury-goods maker, reported full-year profit that beat analysts’ estimates, boosted by strong demand in China and Hong Kong, and raised its dividend 16 percent to 29 pence a share.
Adjusted pretax profit advanced 14 percent to 427.8 million pounds ($652.9 million) in the year through March, London-based Burberry said in a statement today. Analysts’ predicted 417.5 million pounds, according to the median of six estimates compiled by Bloomberg News.
The maker of $2,795 trenchcoats said last month that profit would probably be at the top end of estimates after same-store sales rose 7 percent in the second half. Earnings may rise to 450 million pounds to 480 million pounds this year even as the global environment remains challenging, Burberry said April 17.
“Our brand momentum, proven strategies and closely connected global team provide confidence in Burberry’s future performance,” Chief Executive Officer Angela Ahrendts said in the statement.
Burberry is expanding retail operations and increasing average prices to target the market for the most expensive goods, which Bain & Co. estimates will grow faster than cheaper lines. While the high end of the luxury market is booming, so- called aspirational shoppers are growing weary of heavily logo- ed products, according to the consultant.
Worldwide luxury sales will rise 4 percent to 5 percent this year, excluding currency shifts, Bain estimated last week. Growth will be sustained as booming demand in Southeast Asia offsets a slowdown in China and Europe, Bain said.
Burberry rose 0.5 percent to 1,463 pence in London trading yesterday. The stock has risen 19 percent this year.
By: Andrew Roberts; Editors: John Bowker, Thomas Mulier