Burberry boosted by strong performance in core categories
Burberry has reported a 4% increase in half-year revenue to £1.396 billion as it benefits from strong trading in its core categories.
The uplift in the six months to 30 September follows respective second quarter comparable store sale increases of 10% and 2% in the luxury brand’s EMEIA and Asia Pacific regions. However, sales in its Americas region were down 10% due to trading remaining weak in the region.
Burberry benefited from a stronger performance in its core outerwear category where comparable store sales were up 21% in the first half and 10% in the second quarter. Leather goods sales also rose with a first half uplift of 8% and a quarterly rise of 3%.
Meanwhile, reported operating profit fell by 6% to £223 million in the half year due to investments in stores and marketing, and the impact of inflation on people costs.
Giving an update on current trading, Burberry said a global slowdown in luxury demand is impacting its sales. If the weaker demand continues, it said it is unlikely to achieve its previously stated annual revenue guidance of low double-digit growth.
Jonathan Akeroyd, chief executive of Burberry, said: “We made good progress against our strategic goals, executing our priorities at pace. We continued to build momentum around our new creative vision with the launch of our Winter 23 collection in September, the first designed by Daniel Lee.
“While the macroeconomic environment has become more challenging recently, we are confident in our strategy to realise our potential as the modern British luxury brand, and we remain committed to achieving our medium and long-term targets.”
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