Great Universal Stores (GUS) will divest its Burberry unit later this year, and its Experian and Argos Retail Group (ARG) units at a point to be determined, the company said.
“There is no strategic logic in maintaining ARG, Experian and Burberry within the same group in the long term,” said Sir Victor Blank, chairman of UK-based GUS in a statement.
Blank continued: “While the separation of ARG and Experian will be undertaken at the right time in the future, the board has decided that it is appropriate to [divest] Burberry later this year.”
The announcement came just after a strong year for Experian. The information products and services firm, which is the second largest of the three GUS units, posted 18% sales growth and 16% profit growth. Burberry, the smallest of the units, reported a 10% sales increase and 21% profit jump, while ARG generated a 7% sales increase and 10% profit rise, before a one-time charge.
During the fiscal year, Experian generated nearly $2.5 billion in sales, and profits of $583.1 million, up from sales of $2.36 billion and profits of $516.9 million a year ago. The unit made 27 acquisitions at a total cost of more than $330 million.
On the whole, the company reported a $1.67 billion profit for the year before taxes, goodwill and exceptional items. This represented a 10% figure over last year’s figures. The year ended March 31.
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