As Rev­enues Dip, Burberry Prof­its Climb 42%

Shoes & Accessories - - The Month That Was -

Burberry kept a lid on costs in the first half, send­ing prof­its up 42 per­cent to $173 mil­lion as the com­pany touted the early suc­cess of Ric­cardo Tisci’s first col­lec­tion for the brand.

Rev­enues in the six months to Sep­tem­ber 26 dipped 3.4 per­cent at cur­rent ex­change rates and 2 per­cent at con­stant ex­change to 1.22 bil­lion pounds.

Strip­ping out the im­pact of the beauty busi­ness, which was formerly in-house and is now a li­cense with Coty, first-half rev­enue was up 3 per­cent at re­ported ex­change and 4 per­cent at con­stant rates. Both profit and rev­enue fig­ures beat an­a­lysts’ pro­jec­tions.

In a state­ment, the com­pany said it wit­nessed an “ex­cep­tional re­sponse” to Tisci’s new cre­ative vi­sion, in­clud­ing his re­brand­ing and his first col­lec­tion, which showed dur­ing Lon­don Fash­ion Week in Sep­tem­ber.

Burberry added that its new “go-to-mar­ket model” of monthly drops, cap­sule col­lec­tions and so­cial sell­ing also con­trib­uted to build­ing brand heat.

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