The Associated Press
LONDON — British luxury clothing and accessories maker Burberry said on Tuesday that annual net profits fell 3.4 percent after it took a large exceptional charge.
But shares in the Burberry Group PLC rose just over 1 percent to 14.83 pounds Tuesday after the company reported an 8 percent rise in revenue to 2 billion pounds ($3 billion) and said it was pivoting toward emerging markets in Asia and Latin America.
The company says its China sales growth hit 20 percent and says it has signed new franchise deals in Colombia, Chile, and Barbados.
Burberry's profits have been hit by the end of its licensing deal with French perfume Interparfums SA, which the company says has cost nearly 83 million pounds over the past year.
"Burberry believes that beauty will be a key contributor to future growth, as the brand is under-penetrated relative to peers and direct ownership will enable opportunities to be pursued more rapidly," it added on Tuesday.
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