As Revenues Dip, Burberry Profits Climb 42%
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.