Pre-tax profits at Burberry rocketed nearly 50% to £129m in the six months to September 30, as the luxury giant fine-tuned its stock replenishment system.
Like-for-likes at Burberry jumped 9% in the period, whilst total adjusted revenues grew 21% to £641.1m, helped by the opening of 20 new stores in the Americas and Asia Pacific. Operating margin grew to 14.8% from 10.7% in the same period last year.
Burberry’s retail operation turned over £366m, accounting for 57% of total revenue, whilst its wholesale operation turned over £226m.
Europe remained its strongest performing region, despite a planned reduction in “small specialty [wholesale] accounts” and growth in the US and Asia Pacific.
Sales of clothing grew by 13%, driven by outerwear, whilst sales of accessories such as large leather goods grew by 26% and now account for 40% of total turnover.
Chief executive officer Angela Ahrendts said: “The continued focus on the brand, ongoing investment in our digital, IT and retail infrastructure, especially in China, and a disciplined approach to driving growth underpin our confidence in delivering long-term sustainable returns.”