Burberry's first-half revenues reach new high

14th Nov 2013 07:09

Burberry Group's first-half profit rose as the luxury fashion maker's revenues reached a new high on the back of strong growth in retail.Adjusted pre-tax profit for the six months ended September 30th increased slightly from the prior year to £174m from $173m, above original guidance.Revenue jumped 17% to £1bn from £883m as high demand in retail offset expected lower wholesale revenue. The firm raised its interim dividend by 10% to 8.8p. "We are proud to announce a first half performance that saw Burberry's revenue exceed £1bn for the first time, reflecting the continuing strength of our global brand momentum," said Chief Executive Officer Angela Ahrendts."We remain focused on executing our retail, digital and marketing strategies in the all-important third quarter and in what remains an uncertain macro environment."During the period the company opened 14 mainline stores and launched its Beauty division. The Beauty division is expected to deliver wholesale revenue of about £140m and incremental retail/wholesale profit of around £10m in fiscal year 2014, driven by marketing investment behind fragrance launches.Excluding Beauty, Burberry expects underlying wholesale revenue to increase by a mid to high single-digit percentage in the second half. Burberry also plans to open about 25 mainline stores and close about 15."The senior team continues to balance brand appropriate revenue growth, selective investment and infrastructure efficiencies to drive sustainable profit growth across the portfolio, especially with the significant long-term potential of our fifth product division, Beauty," Ahrendts added. RD