Burberry H1 Revenue Flat

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The FINANCIAL — Luxury goods group Burberry Group Plc. on October 15 its fist-half revenue of 1.105 billion pounds, nearly flat with last year’s 1.100 billion pounds, according to Nasdaq.

In the first half, retail revenue of 774 million pounds increased 3 percent on a reported basis and 2% on an underlying basis. Comparable sales growth was 1%.

The company noted that in the second quarter, demand from luxury consumers, particularly Chinese customers, was affected by a more challenging external environment. For Burberry, this impact was amplified by its geographic mix.

Wholesale revenue fell 4% on a reported basis and 3% underlying to 305 million pounds, while licensing revenue plunged 25% on a reported basis. Wholesale and licensing revenues were broadly consistent with guidance, the company said.

Christopher Bailey, Chief Creative and Chief Executive Officer, said, “While mindful of this external volatility, our plans for the festive season position us well to return to a more positive sales trend in the all-important second half. Looking further ahead, we maintain our focus on – and confidence in – the long-term growth opportunities for our business across channels, regions and product categories.”

Looking ahead for fiscal 2016, the company expects that adjusted profit before tax will be broadly in line with the average of those analysts who have recently updated forecasts. The company’s assumptions include a return to mid-single digit percentage growth in comparable sales in the second half.

Burberry earlier said it expects 2016 group adjusted profit before tax at constant exchange rates to be more second-half weighted than in FY 2015.

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