Boost for Burberry
Fashion house Burberry pledged to give shareholders a greater return from its success today after unveiling another strong set of trading figures.
The group, which is two-thirds owned by Argos-to-Homebase retailer GUS, said it would spend around £250m (€356.8m) on a share-buy back programme, as well as increase its interim dividend by a third to 2p a share.
Burberry announced the move as earnings before tax and exceptional items in the six months to September 30 rose by 18% to £78.8m (€112.5m).
Revenues were £347m (€495.3m), up 14% on an underlying basis, although the company said the market for its stores in the UK had been “subdued”.
Sales from the company’s 151 worldwide locations increased 12% to £111m (€158.4m), but the bulk of its turnover is generated through wholesale business as the company sell products through department stores and speciality retailers.
Burberry said wholesale sales increased by 13% on an underlying basis to £197.2m (€281.5m), helped by double-digit gains for its autumn and winter range.
