Financial News

2004/05 PRELIMINARY RESULTS

24 MAY 2005

Financial Highlights

• Total revenues increased 10% on an underlying⁽¹⁾ basis, 6% reported
  
  
  • Retail sales increased 8% underlying, 3% reported
    
  • Wholesale sales increased 9% underlying, 6% reported
    
  • Licensing revenue increased 19% underlying, 17% reported
  
  
• Gross profit margin increased from 57.9% to 59.3%
  
• EBITA⁽²⁾ margin expanded from 21.1% to 23.1%
  
• EBITA increased by 16% to £165.5 million
  
• 19% increase in diluted EPS (before goodwill amortisation and exceptional gain) to 23.0p
  
• 50% increase in final dividend to 4.5p per ordinary share (6.5p for full year)
  
• Commenced £250 million share repurchase programme with £58 million completed as of 31 March 2005

• Launched major infrastructure redesign initiative
  
  • £18 million investment in year one
    
  • £50 million aggregate investment over three years
    
  • £20 million annual benefits by year three
  
  
• Enhanced design authority and brand presence through critically acclaimed Prorsum collections
  
• Opened 12 directly operated retail locations and completed important store renovations
  
• Extended presence in China and other emerging markets with 10 franchise store additions
  
• Finalised plans with respect to non-apparel licences in Japan
  
• Launched highly successful Burberry Brit for Men and Burberry Brit Red fragrances under attractive new licensing agreement
  

NOTES:
⁽¹⁾ Underlying figures are calculated at constant exchange rates
⁽²⁾ EBITA represents operating profit before interest, taxation, exceptional gain and goodwill amortisation
⁽³⁾ The results for 2003/04 have been restated following the adoption of FRS 17, 'Retirement Benefits' relating to pensions accounting
⁽⁴⁾ The £0.8 million pre-tax exceptional gain in the year ended 31 March 2005 relates to lapsed awards under the IPO Senior Executive Restricted Share Plan (2003/04: £2.2 million)

John Peace, Chairman of Burberry, commenting on the preliminary results: "This marks another successful year for Burberry. Over Burberry's almost three years as a public company, revenue has grown over 40% while EBITA increased in excess of 80%."

Rose Marie Bravo, Chief Executive, stated: "Burberry and its management team succeeded across a broad range of strategic and financial objectives during 2004/05. Together, we look forward to the current year with confidence while continuing to execute our growth strategies and launching a major infrastructure redesign initiative in order to generate value for shareholders over the long term."

Management will discuss these results during a presentation to analysts and institutional investors at 1:00pm today in London at the Merrill Lynch Financial Centre, The Auditorium. The presentation will also be broadcast live on the Internet at www.burberryplc.com and can be accessed by telephone at 020 7081 7194 (UK) and 866 432 7186 (US). The webcast and telephone call will be available for replay. Telephone replay: +44 (0) 20 7081 9440, replay access number 299766.

Enquiries:

View the full Preliminary Results Announcement in PDF format.

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