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Burberry Races Past Peers, Bucks Luxury Trend With 6% Rise in First-Half Revenue, Profit Growth

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Burberry Races Past Peers, Bucks Luxury Trend With 6% Rise in First-Half Revenue, Profit Growth

CEO Josh Schulman said Burberry “outperformed in a challenging macroeconomic environment,” and there is much opportunity ahead.

LONDON — The Burberry knight is galloping ahead of its European rivals, with fiscal first-half sales and profits on the rise in what continues to be a difficult climate for luxury.

Burberry reported a 6 percent uptick in first-half revenue to 1.1 billion pounds, and profit of 54 million pounds, compared with a loss of 18 million pounds a year earlier.

Adjusted operating profit more than tripled to 62 million pounds due partly to Burberry’s efforts to sharpen up its supply chain and keep a lid on costs. Adjusted operating margin rose to 5.7 percent, fueled by “better quality” sales with full-price transactions outstripping outlet sales in the half.

Comparable retail sales rose 4 percent in the first half and in the second quarter — the fifth consecutive quarter of growth for the British brand, which has been undergoing a turnaround under chief executive Josh Schulman.

All Burberry’s major product categories grew in the six months to Sept. 26, while wholesale revenue was up 17 percent in the period, outstripping guidance. All regions, with the exception of Europe, the Middle East, India and Africa, reported growth with Gen Z customer spend rising in the double digits.

A bullish Schulman said the Burberry Forward turnaround strategy, which he set in motion two years ago, is coming to life and said the company is gaining ground because of its “unique” space in the luxury market.


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