Financial Highlights
– Total revenues increased 14% on an underlying* basis to £347 million
Retail revenues increased 12% underlying
Wholesale revenues increased 13% underlying
Licensing revenue increased 31% underlying
– Gross profit margin expanded from 55.6% to 58.6%
– EBITA** increased 18% (22% underlying) to £78.8m
– EBITA margin expanded from 20.8% to 22.7%
– Diluted EPS before goodwill amortisation and exceptional gain increased 20% to 10.8p
– Interim dividend increased 33% to 2.0p per Ordinary Share
Strategic and Operating Highlights
– Retail expansion on track with opening of 3 stores and one concession
– Completed important store renovations
– Renewing selected licences in Japan
– Burberry Brit for Men fragrance launched to outstanding consumer response
– New fragrance licence to result in increased royalty rates and marketing commitment
Share Repurchase Programme
– Burberry announces share repurchase programme
* Underlying figures are calculated at constant exchange rates.
** EBITA represents profit before interest, taxation, goodwill amortisation and exceptional gain.
John Peace, Chairman of Burberry, commenting on the interim results: "In the context of out-performance since the July 2002 IPO, a strong balance sheet and attractive future growth opportunities, Burberry is announcing today a significant share repurchase programme designed to enhance the capital efficiency of the business and benefit all shareholders."
Rose Marie Bravo, Chief Executive, stated, "Burberry delivered a strong first half performance driven by the continued execution of our core strategies and the balance of our business across product categories, channels and regions. We were particularly pleased by the continued operating margin improvement, leading to a 20% EPS increase."
