Burberry, a luxury clothing brand from the United Kingdom, on Thursday reported a rise in annual profits, with income increasing at the end of its fiscal year as a result of China’s opening following pandemic lockdowns.
In the 12 months ending in March, net profit increased by roughly a quarter to £490 million ($609 million), according to a statement from Burberry.
Compared to 2021–2022, revenue increased by 10% to £3.1 billion.
In the statement, Burberry CEO Jonathan Akeroyd said, “We have delivered a strong financial result, driven by good success in our core leather goods and outerwear categories, with revenue rising in the fourth quarter as growth resumed in mainland China.
Despite the increase in profits, Burberry shares fell by almost 7% in London trading as investors banked substantial previous gains.
According to Richard Hunter, head of markets at Interactive Investor, “By way of context, this follows a share price hike of 59 percent over the last year, as compared to a gain of 3.8 percent for the wider FTSE 100” index in London.
Additionally, the group’s creative director, British designer Daniel Lee, took over for Italian designer Riccardo Tisci last year.