- Adjusted profit before tax dropped 24%
- Revenue down 4%
- UK like-for-like sales jumped more than 30%
Burberry reported a slump in its first-half profits as rising like-for-likes in the UK failed to offset falling sales in Europe and Hong Kong.
The luxury fashion retailer’s adjusted profit before tax slumped 24% to £146.2m in the six months to September 30 while revenue declined 4% to £1.1bn.
Burberry recorded a jump in UK like-for-likes sales of more than 30% as luxury tourists took advantage of the weak pound.
Like-for-likes remained unchanged during the period overall and retail sales edged up 2% on an underlying basis.
Mainland China recorded rising like-for-likes but this was offset by double digit percentage declines in Hong Kong.
Tourist spend declined in continental Europe during the period and like-for-like sales in the Americas also decreased.
Burberry opened 11 new stores and closed 24 outlets during the period.
The luxury retailer’s licensing revenue slumped 54% in the first half owing to the expiration of its licences in Japan.
Wholesale revenue dropped 14%, largely because of falling sales in the Americas.
The fashion retailer launched a redesigned desktop website and its online arm continued to grow across all regions driven by mobile sales.
Chief executive Christopher Bailey said: “In May we outlined plans to evolve how we work as a business and to drive Burberry’s future growth in a rapidly-changing luxury environment.
“Since then, we have made good early progress towards realising the significant opportunities ahead of us, as we begin implementing our five strategies. We remain on track to deliver our financial goals.”