Burberry profits vulnerable to forex
Fashion house Burberry has seen a rise in revenue of seven per cent to £1.1bn for the first half.
Burberry cheerfully reported a strong performance across all regions and continued digital growth. Retail sales climbed eight per cent to £748m, with double-digit growth in Asia Pacific and the Americas.
“This has been a strong first half for Burberry, with sales growth of 14 per cent reflecting our ongoing brand and business momentum”, according to Chief executive officer Christopher Bailey.
Nevertheless, it was not all good news for the FTSE 100 company. Burberry warned that foreign exchange (forex) movements would hit licensing revenue by roughly £10m in 2014
Burberry added that if current forex rates continue the reported profits for the wholesale and retail divisions would be “material” for the year.
Bailey said: “Looking ahead, while mindful of the more difficult external environment, we have never been better prepared internally for the all-important festive periods, with our teams intensely focused on delivering outstanding products and experiences, alongside continued investment to drive productivity and profitable growth over the long term”.
Source: cityam- Burberry profits vulnerable to forex
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