Burberry grows 5%, profit jumps 13.7% in the first half

Burberry closes the first half up. The British luxury company has ended the first six months of its fiscal year, ended September 29, with a net profit of 150.1 million pounds (192.7 million dollars) boosted by the new accounting standard IFRS 16. Excluding the impact of the new measures, the group’s profit increased by 11%.

The company has also increased its sales in the year until September, with an increase of 5%, to 1.2 billion pounds (1.6 billion dollars). Burberry has explained that the increase of its revenues is due to the multiannual strategy it is carrying out, which goes through the transformation of distribution with wholesale rationalization and refreshed retail stores in all major cities.

Burberry keeps its full year outlook

After remodeling its commercial network, sales of Burberry’s directly operated stores have risen 6% during the period. The revenue of the licenses, on the other hand, has also experienced an increase of 6%, while the revenues of the channel multibrand had a flat evolution.

However, while sales in Hong Kong fell double-digit, sales rose by 6% in the rest of Asia Pacific. In Europe, the group’s sales have also increased by 6% while in America the increase has been 2%. 

Marco Gobbeti, chief executive officer of Burberry, said: “we delivered financial results in line with guidance despite the decline in Hong Kong and we confirm our outlook for fiscal year 2020.”