Burberry Profits Up 8% as Christopher Bailey Takes the Helm

British luxury brand Burberry reported an 8% increase in yearly profits on strong revenue growth, and the future looks bright under newly appointed boss Christopher Bailey.

Adjusted pre-tax profit for the year ended on 31 March rose 8% to £461m ($776m, €566m), while reported pre-tax profit increased 27% to £444m.

Revenues for the year rose 17% to £2.33bn with comparable sales rising 12% on year.

During the year, Burberry made innovative collaborations with Amazon, Apple and Google to enhance its sales.

Outerwear, large leather goods and menswear were the company's key growth drivers. In addition, the luxury brand's focus on increased investment in flagship markets such as Shanghai contributed to the growth.

"The strength of this performance reflects sustained strategic focus, continued investment, disciplined execution and outstanding brand momentum during the year," Bailey said in a statement.

Bailey assumed the roles of chief creative and chief executive from Angela Ahrendts on 1 May.

On the back of the strong results, the company increased yearly dividend by 10% 32.0 pence.

Looking ahead, the company said its wholesale revenue from beauty will grow about 25% at constant exchange rates this year. It is also targeting "mid-teens percentage" growth in fragrances from fiscal 2016.

In Japan, Burberry plans to increase its stores in key markets including Tokyo and Osaka in a bid to lift revenue there to more than £100m by fiscal 2017. Japan is the second largest luxury market globally and the company is looking to do business in the country independent from franchisees.

Burberry plans to open about 20-25 mainline stores and close between 15-20 stores, with openings geared towards flagship markets and travel retail, the company said.

"As we enter a new chapter, our teams are united and energised by the opportunities ahead - from unlocking Japan, to accelerating beauty and further integrating the physical and digital to deliver distinctive experiences," Bailey added.

"While mindful of macroeconomic uncertainties and currency headwinds, we remain focused on the things we can control and confident of driving sustainable future growth, benefiting all our stakeholders."

Burberry noted that there will be a "material impact" on 2014-15 profit if foreign exchange rates remain at current levels.

Shares in the company are trading up 1.12% at £1.532 as of 8:52 am GMT.