Bags boom drives Burberry profits

Fashion house Burberry finished a stellar year in style today as bumper sales of leather bags and accessories drove a surge in annual profits.

The 155-year-old maker of raincoats and handbags said sales of non-apparel goods, such as handbags, jewellery and shoes, grew 35% in the year to March 31.

The luxury clothing firm, famous for its red, black and camel check, said its focus on non-apparel paid off as the sector accounted for nearly half the group’s sales growth.

Burberry reported a 39% increase in underlying pre-tax profits of £298m (€343m), after a 27% increase in revenues to £1.5bn (€1.7bn).