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High-end fashion retailer Burberry resumed its full-year dividend after reporting a jump in profit as margins improved amid an accelerated recovery and a strong final quarter of the year.
For the full year ended 27 March 2021, pre-tax profit profit rose 190% to £490 million year-on-year, while revenue fell 11% to £2.34 billion.
Revenue fell 30% in H1 amid store closures and reduced tourism, but the recovery accelerated through the year, leading to Q4 FY21 comparable store sales increasing 32% year on year and -5% compared with Q4 FY1, the company said.
Full-price sales grew 63% in the quarter versus 12% in Q4 FY19, driven by Mainland China, Korea and the U.S.
Reported operating profit margin jumped to 22.2% from 7.2% last year.
The full-year dividend was reinstated at fiscal 2019 levels of 42.5 pence a share.
Looking ahead, the company said it expected first-half wholesale revenue to increase by around 50%, but the exiting of markdowns in mainline stores will weigh on sales in FY22.
'This will lead to a headwind against our comparable store sales of mid-single digits in the full year with Q1 FY21 comp impacted by HSD [high single digits],' the company said.
Revenue is expected to grow at a high single digit percentage compound annual growth rate at FY21 constant currency in the medium term, it added.