Burberry profits jump 41% in first half

15th November 2011, Comments 0 comments

Burberry said on Tuesday that net profits jumped 41 percent in the group's first half as fashion-conscious consumers around the world snapped up the British group's luxury clothes and handbags.

Burberry, famous for its trench coats and trademark red, camel and black check design, said profits increased to £117.2 million (137 million euros, $186 million) in the six months to the end of September from the same part of 2010.

Revenues rose 29.4 percent to £829.6 million in the reporting period.

"Burberry has delivered a strong first half, reflecting our continued investment in innovative design, digital marketing and retail strategies," chief executive Angela Ahrendts said in the group's earnings statement.

She added that Burberry was "mindful of, and prepared to react to, any local or global uncertainties as we drive for long-term sustainable growth."

Burberry is enjoying robust growth on strong demand for its products in emerging markets such as China, India, Latin America, the Middle East, Russia and Turkey.

Burberry's shares were however the biggest faller on London's FTSE 100 index, slumping 5.0 percent to 1,350 pence on profit-taking according to analysts. The FTSE was down 0.48 percent at 5,493.30 points in mid-afternoon deals.

"The shares have succumbed to some inevitable profit taking after a formidable recent run," Richard Hunter, head of equities at Hargreaves Lansdown Stockbroker said on Tuesday.

"Burberry is fully locked into the China growth story. This strategy is being complemented by store openings and expansion elsewhere, and appetite for its products shows no sign of waning," he added.

© 2011 AFP

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