British fashion house Burberry predicted a strong financial performance in 2004/5 as colourful new lines helped the company chalk up a 21 per cent increase in full-year earnings.
Burberry, whose fashions are sported by royalty and football fans alike, today reported 2003/4 earnings before interest, taxes and amortisation (EBITA) of £141.2 million sterling ($252.9 million), up from the previous year's £116.7 million.
Total revenues, reported last month, rose 14 per cent or 15 per cent on an underlying basis, which excludes the effects of currency movements and changes in group structure, as all three business areas put in a strong performance.
Best sellers included a pink version of the company's trademark raincoat, sold in aid of breast cancer charities, as well as pink adaptations of classic handbags and accessories.
Chief financial officer Ms Stacey Cartwright said she believed the consensus of analysts' profit forecasts might shift towards the top end of the current range. "In terms of the actual consensus, with EBITA at £154-158 million, you may see some hardening at the top end," Ms Cartwright said.
Earnings per share for 2003/4 grew by 28 per cent to 19.1 pence, and the final dividend was raised by 50 per cent to three pence per share, bringing the total for the year to 4.5 pence.