Burberry profit to top hopes

The 154-year-old maker of upmarket raincoats and handbags also said Tuesday it was confident of further progress in 2010/11 despite uncertainty over the pace and level of the global economic recovery.

Prior to the update, analysts were forecasting a consensus underlying pretax profit of 199 million for the year to March 31, 2010, according to a company poll, versus 175 million in the previous year.

The group, known for its camel, red and black check, said underlying revenue increased 6 percent to 707 million in the six months to March 31.

That compared with analysts' consensus forecast of a rise of 5 percent, a third-quarter increase of 12 percent and a first-half decline of 5 percent.

Second-half retail sales increased an underlying 15 percent, driven by strong full-price sales of spring and summer ranges.

Underlying wholesale revenue fell a better-than-expected 6 percent, while underlying licensing revenue was also down 6 percent, in line with guidance.

Shares in Burberry, which have more than doubled over the last year, closed at 704.5 pence Monday, valuing the business at 3.06 billion.

Luxury goods firms have been hit hard by the recession but Burberry has coped better than most because it reacted quickly by slashing costs and jobs as well as its stocks and ranges.