Burberry hits its stride as profit tops forecasts
Published 17/11/2010 | 05:00
BURBERRY, the UK's largest luxury retailer, reported first-half profit growth that beat analysts' estimates and raised its interim dividend as shoppers bought more of its most expensive products.
Net income rose to £83.1m (€97.8m) from £56.8m a year earlier, the London-based company said. Analysts expected £64.5m.
The dividend for the six months ending September 30 increased 43pc to 5p a share. Burberry is adding more expensive goods and offering fewer discounts as demand for luxury items rebounds.
Gucci and Hermes both reported stronger sales or earnings in the past month, led by gains in Asia.
"This continues the positive series from luxury goods companies," said Luca Solca, an analyst at Sanford C Bernstein. "Burberry is certainly moving in the right direction."
Burberry rose 0.4pc in London trading and is up 71pc this year, giving a market value of £4.46bn. (Bloomberg)