Burberry profits rise, China reopening boosts sales
by AFP Staff Writers
London (AFP) May 18, 2023

British luxury fashion house Burberry on Thursday announced a jump in annual profits, with revenue boosted towards the end of its financial year thanks to China's reopening from pandemic lockdowns.

Net profit grew almost a quarter to 490 million pounds ($609 million) in the 12 months to the end of March, Burberry said in a statement.

Revenue climbed 10 percent to 3.1 billion pounds, compared with 2021/22.

"We have delivered a strong financial performance, supported by good progress in our core leather goods and outerwear categories, with revenue accelerating in the fourth quarter as growth rebounded in mainland China," Burberry chief executive Jonathan Akeroyd said in the statement.

Despite the jump in profits, shares in Burberry tumbled nearly seven percent in London trading as investors banked strong recent gains.

"By way of context, this follows a share price hike of 59 percent over the last year, as compared to a gain of 3.8 percent for the wider FTSE 100" index in London, noted Richard Hunter, head of markets at Interactive Investor.

Last year also saw British national Daniel Lee replace Italian designer Riccardo Tisci as the group's creative director.

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