Burberry ready to to grow after spike in profits

Burberry is stepping up its expansion plans on the back of a sharp rise in profits.

The fashion house said today that it will open between 20 and 30 stores this year as it posted headline pre-tax profits of £215 million for the 12 months to the end of March, up 23% on a year earlier.

Burberry's shares soared 35½p to 648p as the results beat City forecasts.

Chief executive Angela Ahrendts said Burberry's stores in the capital remain among its best performers: "London is very strong. That's partly because of currency, but also because of the popularity of our products [with British shoppers]."

Total sales rose 7% to £1.28 billion, with the label bringing in a new April Showers collection after its spring/summer designs flew out of stores.

"We brought forward deliveries because we were running low on stock; April Showers filled that gap and has had a fantastic reception since it landed," finance director Stacey Cartwright explained.

Recent best-sellers include tote bags from this collection, while shoes, menswear accessories and traditional trench coats have also proved particularly popular.

The label's expansion will focus on emerging markets, such as Brazil, Mexico and India, and on growing online sales.

Despite the strong figures, it remained cautious about the prospects for the luxury goods market, and said it had achieved the results by stealing sales from its rivals. "Markets are still challenging and very volatile," Ahrendts said.

She added she was very pleased with the decision to return to London Fashion Week, where a ticket to its show has been one of the most sought after on the calendar for the past two seasons. Fans of chief creative officer Christopher Bailey's designs include Gossip Girl's Blake Lively and Twilight star Kristen Stewart.

The dividend is up 17% to 14p.