(Refiles to fix garble in second paragraph)
* New CEO Christopher Bailey started new role May 1
* FY adjusted pretax profit 461 mln stg, up 8 pct
* Revenue 2.33 bln stg, up 17 pct
* Sees impact on 2014-15 profit from currency headwinds
* Shares flat
By James Davey
LONDON, May 21 Burberry's new chief
executive hopes to quadruple its revenue in Japan by 2017 as the
expiry of third-party sales licences give the company a free
rein to expand in the world's second-largest luxury goods
The British maker of luxury clothing and accessories has
been taking back control of important parts of the business from
licensed vendors who sell its goods and investing heavily to
develop them alone.
The Japan licence expiry in June next year will be the final
step in that strategy and a major test for Burberry
boss Christopher Bailey, who took the helm this month and
remains the company's chief creative officer.
Burberry said its four stores, 10 concessions and small
wholesale business in Japan generated 25 million pounds of
revenue in its 2013-14 financial year, but no profit.
The company, best known for its camel, red and black check
pattern, plans to open shops in Omotesando and Shinjuku, Tokyo
and Osaka and add about 20 concessions in department stores by
the end of the 2016-17 financial year.
With a further boost from in-house and third-party digital
platforms, it said it aims to achieve 100 million pounds of
retail sales in the country and about 25 million pounds in
profit by 2016-17.
Bailey's performance-dependent maximum pay package of 10
million pounds ($17 million) depends partly on meeting those
goals and getting more revenue in fragrances and beauty products
after the firm began directly operating that business last year.
Bailey's predecessor Angela Ahrendts, who has joined U.S.
tech giant Apple, achieved an 8 percent rise in profit
in the year to March 31, in line with analyst forecasts.
The 158-year-old company repeated a warning that if foreign
exchange rates remain at current levels there would be a
material impact on 2014-15 profit.
Bailey, 43, succeeded Ahrendts on May 1, although his
appointment was announced in October.
Although some investors have fretted over his dual creative
and executive role, shares in Burberry are up 2 percent over the
last six months.
They were flat at 1134 GMT, valuing the business at 6.7
"Bailey elucidated clear goals going forward, placing the
emphasis on unlocking Japan, accelerating the beauty division
and initiating expansion into underpenetrated markets," said
analysts at retail research group Conlumino.
Burberry made a full-year adjusted pretax profit of 461
million pounds - in line with a consensus analyst forecast, on
revenue up 17 percent at 2.3 billion pounds.
It ended the year with net cash of 403 million pounds,
raised its full-year dividend by 10 percent to 32 pence and said
it was confident of driving sustainable future growth.
But as an indication of the potential hit from currency
headwinds, it said rebasing 2013-14 retail/wholesale profit for
current exchange rates reduced its actual reported profit by
about 40 million pounds.
It said that, at current exchange rates, reported licensing
revenue in 2014-2015 would be reduced by about 10 million pounds
because of movement in sterling against the yen.
Burberry expects net new space to contribute low to mid
single-digit percentage growth to total retail revenue in
2014-15. Excluding beauty, it expects wholesale revenue at
constant exchange rates to be broadly flat in its first half.
It sees beauty wholesale revenue growing by about 25 percent
at constant exchange rates in 2014-15, and expects broadly
unchanged revenue at constant exchange rates from both Japanese
and global product licences.
($1 = 0.5935 British Pounds)
(Editing by Kate Holton and Tom Pfeiffer)