Burberry's first half revenue rises, driven by growth in retail and wholesale

12th Nov 2014 07:20

Burberry on Wednesday reported a 14% increase in total revenues for the first half to £1.1bn with growth in retail and wholesale sales.The luxury fashion house was, however, hurt by the impact of a stronger sterling against currencies in other countries in which it has business.Reported pre-tax profit fell 11.9% to £159m against the previous year. Excluding the impact of exchange rates, pre-tax profit rose 6% to £152m.Operating profit dropped 12% to £152.2m, reflecting adverse exchange rate movements of £31m.The company raised its dividend 10% to 9.7p. Burberry said it intends to move progressively to a 50% dividend payout ratio.Christopher Bailey, chief creative and chief executive, said: "We're proud to report that Burberry delivered a strong first half, with sales increasing by 14% and profit up 6%, both underlying. This performance reflects the passion and commitment of our teams around the world and the great momentum of the brand."Looking ahead, in a more difficult external environment, we continue to focus on the things that we can control. Through authentic products, great customer experiences and a culture of continuous improvement and innovation, we remain confident of Burberry's sustained outperformance."