18th Oct 2016 06:35
LONDON (Alliance News) - Burberry Group PLC on Tuesday reported growth in revenue in the first half of its financial year, boosted by positive foreign exchange movements, and said full-year retail and wholesale profit, meaning excluding licensing, will benefit even more from those movements than previously expected, although underlying expectations remain unchanged.
The luxury fashion retailer said total revenue rose by 5% year-on-year in the six months to September 30 to GBP1.16 billion, but fell by 4% on an underlying basis, which is at constant currencies.
Retail revenue grew by 11% at reported exchange rates and by 2% on an underlying basis to GBP859 million, but wholesale revenue fell by 14% on an underlying basis to GBP287 million and licensing revenue decreased by 54% to GBP13 million also on an underlying basis.
Burberry added that full-year adjusted retail and wholesale profit will benefit from movements in foreign exchange rates. Using exchange rates at September 30, profit should benefit by about GBP105 million on the prior year, which is up on the expected benefit of GBP90 million based on June 30 rates. Using exchange rates at October 12, an extra GBP20 million would be expected on top of the GBP105 million.
On an underlying basis, Burberry's full-year adjusted profit expectations remain unchanged.
"In a challenging external environment, we continue to focus on product innovation, retail productivity and digital leadership, against a backdrop of sustained action and investment to deliver long-term outperformance of our brand and business. The progress we are making to improve our ways of working, the agility of our teams to react to changes in consumer behaviour and the strength of our brand give us confidence for the future. We remain on track to deliver our financial goals," Chief Creative & Executive Officer Christopher Bailey said in a statement.
By Karolina Kaminska; [email protected] @KarolinaAllNews
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