Profits hit by Atlas infrastructure programme
Luxury goods company Burberry revealed a revenue rise of 10 per cent to£392 million on an underlying basis for its first half to September 30.

Operating profit rose 7 per cent to£84.2 million. However, taking into account the costs of the Atlas infrastructure programme, there was a 2 per cent slide in operating profits to£74.6 million, compared with£75.8 million for the same period last year.

Retail revenues increased 23 per cent on an underlying basis to£169.1 million, but wholesale revenues rose just 1 per cent and licensing profits were up 5 per cent.

Burberry revealed 'excellent' progress in retail, having opened six new stores, a relocation store, five concessions and two outlets. The autumn 2006 luxury handbag collections achieved excellent results at retail and a men's fragrance, Burberry London, was launched in August.

Chief executive officer Angela Ahrendts said: 'Led by excellent retail performance, strong outerwear sales and enthusiastic demand for new accessories collections, Burberry delivered a 10 per cent gain in adjusted operating income in the first half.'

She added: 'The management team moves confidently into the second half as we continue to execute our strategies and plan to extend this momentum to the full financial year.'

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