Burberry feels the chill as profits fallComments Off on Burberry feels the chill as profits fall
Burberry looked out of fashion on Wednesday as the British design house failed to match the pace of its luxury rivals, posting falling sales and profits.
The 24% underlying pre-tax profit fall to £146 million in the six months to September 30 reflected tough trading in Hong Kong and the US for the trenchcoats maker.
The results hit City expectations but lagged figures from rivals including Kering and LVMH, which beat forecasts in their latest updates on trading.
It also saw revenue dip 4% to £1.2 billion, with weak demand in some overseas markets offsetting a 30% surge in second-quarter UK revenue as tourists took advantage of the lower pound.
But Burberry added it is on track to deliver cost savings of around £20 million in the full year.
Finance boss Carol Fairweather said its Christmas campaign, with TV ads starring actress Lily James, “has had a tremendous response”.
Chief executive Christopher Bailey added: “We remain on track to deliver our financial goals.”