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(Sharecast News) - Luxury fashion house Burberry reported a sharp improvement in first-half profitability on Thursday and reiterated its confidence in delivering revenue growth and margin expansion this year, as it extended its run of positive comparable sales growth to a fifth consecutive quarter.
Burberry said adjusted operating profits more than tripled to £62m from £19m a year earlier, while adjusted operating margins improved to 5.7% from 1.9% and revenues rose 6% to £1.1bn, with comparable retail sales up 4% in both the second quarter and first half.
The FTSE 100-listed group said momentum under its Burberry Forward strategy continued across all major product categories, with luxury jewellery delivering strong growth, while outerwear sales increased by double digits and leathergoods performance accelerated through the second quarter. E-commerce sales were up by the mid-teens.
Regionally, the Americas remained the standout performer, with comparable sales rising 12% in the first half, while Greater China grew 7% despite a challenging market backdrop. EMEIA, on the other hand, remained weaker, with sales down 2%, reflecting subdued tourist demand and softer outlet traffic.
Wholesale revenues increased 17%, comfortably ahead of guidance, which Burberry said reflected growing confidence among its strategic partners.
Burberry also highlighted continued operational progress, with gross margins improving to 68.3%, operating costs remaining broadly flat and leverage reduced to 1.7x.
Looking ahead, Burberry expects to deliver further progress against its financial ambitions in FY27, including revenue growth and margin expansion, although it cautioned that the wider macroeconomic backdrop remained uncertain.
As of 1015 GMT, Burberry shares were up 6.82% at 1,167.50p.
Reporting by Iain Gilbert at Sharecast.com
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