Burberry bags have 14 percent profit rise annual
May 28 (Reuters) - British fashion brand Burberry Group Plc (BRBY.L) reported a 14 % increase in annual profit, helped by strong sales of their luxury handbags and trench coats, and declined to comment on talk it could be a takeover target.Chief Executive Angela Ahrendts said inside a statement Burberry's adjusted operating profit of 206.Two million pounds ($408 million) in the year to March 31 showed "the robustness of our global luxury business during these challenging times".Underlying revenue at the house, grown from a The first world war trench-coat maker, rose 26 percent in Europe and also the Americas, and 17 % in Asia Pacific. Non-apparel, including luxury handbags, shoes and jewellery, rose 39 percent.Business had become "increasingly challenging during the second half", Ahrendts added, providing the latest indication the slowdown in mid-market consumer spending on the back of rising living costs is beginning to pressure luxury goods.However in a sign of burberry outlet's confidence, Ahrendts added the fashion house, known for its camel and red check, would nearly double its capital expenditure with this year to 90 million to 95 million pounds, from 49 million pounds last financial year, for brand new stores, refurbishments, IT and a new headquarters.Brand momentum remains strong and that we are purchasing the future, continuing to grow and innovate our iconic outerwear, while developing exciting new businesses for example shoes, jewellery and childrenswear," Ahrendts said.Burberry shares were flat at 507 pence in early trade, in line with the DJ Stoxx index of consumer goods .SXQP including sector heavyweights LVMH Moet Hennessy Louis Vuitton (LVMH.PA) and Richemont (CFR.VX).Burberry stock has rebounded 27 percent in the past 8 weeks, fuelled by unexpectedly strong fourth-quarter sales and bid speculation with U.S. luxury leather goods house Coach (COH.N) being mentioned as a potential buyer.Chief Financial Officer Stacey Cartwright declined to comment to reporters on whethermulberry purses sale , a perennial subject of speculation, had received any approaches from possible buyers. The organization had sufficient organic growth potential for it to rule out an acquisition, she added.U.S. STRONG.Investors and industry executives are watching closely for signs of a slowdown among mid-market retailers extending towards the luxury goods sector, which has been boosted for quite some time by heady development in emerging markets.Switzerland's Richemont, owner of Cartier, Piaget and Montblanc brands, met expectations with its full-year net profit last week but warned the global financial crisis would be a cause for concern.Cartwright said Burberry saw "much more volatility" in the sales trends within the fourth quarter as a result of mounting consumer concerns withi... [ Read More (0.2k in body) ]

Burberry bags have 14 percent profit rise annual