Burberry Group plc (LON:BRBY) lifts its dividend by 16% to yield almost 2%.
The shares of Burberry (LSE: BRBY) climbed 3% to 1,502p during early London trade this morning after the luxury retailer revealed record annual profits and sales.
Burberry, one of the world's foremost luxury fashion brands, reported sales rising 8% to £2bn. This increase was driven by a 14% boost in Asia-Pacific revenues, predominantly from the company's retail division in China.
As a result, almost 40% of Burberry's total sales now come from the Asia-Pacific region, the company's largest geographical segment. Burberry's retail division meanwhile has grown to represent 71% of group sales, after annual wholesale revenues were broadly flat.
Burberry's normalised pre-tax profits also reached record levels, growing 14% to £428m. However, the company incurred an £83m exceptional charge, reflecting the termination of its fragrance license relationship with Inter Parfums in 2012.
In light of these record results, Burberry hiked its full-year dividend by 16% to 29 pence per share, from 25p last year.
Giving her outlook for the year, Burberry chief executive Angela Ahrendts said:
"Looking ahead, although the macro environment remains uncertain, Burberry is well positioned with opportunity by channel, region and product.
"Our brand momentum, proven strategies and closely connected global team provide confidence in Burberry's future performance."
With a market cap of £6.5bn, Burberry is valued at 22 times its expected earnings. After lifting its dividend today, Burberry's shares offer a trailing yield of 1.9%.
Of course, whether that valuation and the prospects for the fashion industry combine to make Burberry a 'buy', is something only you can decide.
But if you already own shares in Burberry and are looking for alternative investment opportunities, this exclusive wealth report reviews five particularly attractive possibilities.
Indeed, all five opportunities offer a mix of robust prospects, illustrious histories and dependable dividends, and have just been declared by the Fool as "5 Shares You Can Retire On"!
Just click here for the report -- it's free.
> Mark does not own any shares mentioned in this article. The Motley Fool has recommended shares in Burberry.