Burberry sets new medium-term sales guidance as H1 profits rise
By Michele Maatouk
Date: Thursday 17 Nov 2022
(Sharecast News) - Luxury fashion brand Burberry posted a jump in first-half profit on Thursday as it set new medium-term guidance for sales.
In the 26 weeks to 1 October, adjusted operating profit rose 6% at constant exchange rates to £238m, while revenues grew 5% to £1.35bn. The company's retail comparable sales were up 5%, while wholesale sales were 1% higher.
An interim dividend per share of 16.5p was declared, up from 11.6p in the same period a year earlier.
Burberry said new product launches and seasonal collections performed strongly. Leather goods sales saw good momentum, with comparable sales up 15% in the second quarter and 11% higher in the first half.
This was driven by handbags, with the Lola now its bestseller and helped by the introduction of the Frances shape for AW22.
Comparable sales of outerwear grew 3% in the first half. This was impacted by lockdowns in mainland China. Outside of mainland China, however, sales were up 18%, with a strong performance across both men's and women's.
Burberry maintained its near-term guidance to FY24 "while mindful of the challenging macro environment", particularly Covid-19 disruption in China and recessionary risks in Europe and the Americas.
It also established a new medium-term target to grow sales to £4bn at constant exchange rates.
Chief executive Jonathan Akeroyd said: "Burberry has an extraordinary legacy, a unique British heritage and a very strong platform to build on, as shown in our half-year results. Our focus in this next phase is on growth and acceleration. We have a clear plan to achieve this across brand, product and distribution and a very talented designer in Daniel Lee, supported by a passionate team.
"I am confident in our ability to deliver our medium-term targets and realise our potential as the modern British luxury brand. I am excited about what we can achieve in pursuit of our long-term ambition to reach £5bn in revenue."
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