Luxury fashion group Burberry (BRBY) has committed to a further £150m share buyback after full-year operating profits came in ahead of analysts’ expectations thanks to a better performance from the wholesale division. That’s on top of a 6 per cent rise in the ordinary dividend to 41.3p, and the £524m returned to shareholders over the past year (a combination of dividends and share buybacks). The group still finished up with £892m in net cash, having clawed back another £64m in cost savings and pushing free cash flow up 4 per cent to £484m.
Marco Gobbetti joined as the group’s new chief executive last summer, and recently appointed Riccardo Tisci as its new creative head – replacing long-time designer Christopher Bailey. Mr Tisci’s first collection for the brand is expected to hit catwalks this September, although the group’s focus is increasingly online-led. Digital platforms are due to undergo a “refresh”, while a new partnership with online marketplace Farfetch should extend Burberry's reach to more than 150 countries. The group is also reviewing its store estate, closing a net 20 sites during the period.
Analysts at Morgan Stanley expect pre-tax profit of £432m for the year ending March 2019, giving EPS of 76.8p, compared with £471m and 81.9p in FY2018.
BURBERRY (BRBY) | ||||
ORD PRICE: | 1,838p | MARKET VALUE: | £7.7bn | |
TOUCH: | 1,838-1,839p | 12-MONTH HIGH: | 2,024p | LOW: 1,482p |
DIVIDEND YIELD: | 2.2% | PE RATIO: | 27 | |
NET ASSET VALUE: | 340p | NET CASH: | £892m |
Year to 31 Mar | Turnover (£bn) | Pre-tax profit (£bn) | Earnings per share (p) | Dividend per share (p) |
2014 | 2.33 | 444 | 73.6 | 32.0 |
2015 | 2.52 | 445 | 76.4 | 35.2 |
2016 | 2.51 | 416 | 70.0 | 37.0 |
2017 | 2.77 | 395 | 65.3 | 38.9 |
2018 | 2.73 | 413 | 68.9 | 41.3 |
% change | -1 | +5 | +6 | +6 |
Ex-div: | 28 Jun | |||
Payment: | 3 Aug |