Amendment of licence agreemen

RNS Number : 1235A

Burberry Group PLC

02 October 2009

 



2 October 2009

Burberry Group plc 

Amendment of licence agreement in Japan

Burberry Group plc today announces an amendment to its apparel licence with Sanyo Shokai Ltd and Mitsui & Co., Ltd in Japan.

• The licence agreement will now expire in June 2015 (previously 2020).

• In the year to 31 March 2010, Burberry will receive higher royalty payments than previously planned, which will increase operating profit by approximately £4m. 

• Enhanced performance criteria based on higher levels of production have been introduced from 1 January 2011 until the expiry of the licence agreement.  

Angela Ahrendts, Chief Executive Officer of Burberry, said:

'Japan is a strategically important market for Burberry, where we continue to review all opportunities available to us. This amendment to the licence agreement will add to our profitability in the near term. Together with the luxury non-apparel joint venture announced last November, the amendment also better positions Burberry in the next few years to optimise its presence in Japan and the high growth Asian region.'

Enquiries

Burberry		020 3367 3524
Stacey Cartwright	EVP, Chief Financial Officer
Fay Dodds	Director of Investor Relations

Brunswick		020 7404 5959
David Yelland
Laura Cummings

About Burberry

• Burberry is a global luxury brand with a distinctive British heritage, core outerwear base and has one of the most recognised icons in the world.

• Burberry designs and sources apparel and accessories, selling through a diversified network of retail, wholesale, licensing and e-commerce channels worldwide.  

• Burberry has five strategic themes to underpin its growth: leverage the franchise; intensify non-apparel development; accelerate retail-led growth; invest in under-penetrated markets; and pursue operational excellence.  

• At 30 June 2009, Burberry globally had 118 retail stores, 253 concessions, 47 outlets, 84 franchise stores and e-commerce in over 25 countries. 

• Burberry, which is headquartered in London, was founded in 1856. Burberry is listed on the London Stock Exchange (BRBY.L) and is a constituent of the FTSE 100 index.

About Burberry's luxury non-apparel joint venture in Japan

• The Japanese luxury non-apparel joint venture agreement was signed on 18 November 2008.

• Burberry's partners are Sanyo Shokai and Mitsui & Co., with Burberry having a majority stake.

• The joint venture will develop the retail distribution of Burberry's international non-apparel products in Japan.

• The venture will be operational for the Spring/Summer 2010 season.

Certain statements made in this announcement are forward-looking statements.  Such statements are based on current expectations and are subject to a number of risks and uncertainties that could cause actual results to differ materially from any expected future results in forward-looking statements.

This announcement does not constitute an invitation to underwrite, subscribe for or otherwise acquire or dispose of any Burberry Group plc shares.  Past performance is not a guide to future performance and persons needing advice should consult an independent financial adviser.

 

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