Burberry has reported a 12% drop in profits for the first half to £152.3m as currency fluctuations weighed on margins.
Adjusted pre-tax profit for the six months to September 30 fell by £31m due to “adverse rate impact”. Underlying adjusted profit before tax was up 6%.
Underlying revenue rose 14% to £1.1bn at the British brand. Underlying operating margin was down 80 basis points at 13.1%, impacted by one-off costs relating to a fragrance launch.
During the half Burberry opened nine stores, including six in airports.
Chief creative officer and chief executive Christopher Bailey said: “We’re proud to report that Burberry delivered a strong first half, with sales increasing by 14% and profit up 6%, both underlying. This performance reflects the passion and commitment of our teams around the world and the great momentum of the brand.
Looking ahead, in a more difficult external environment, we continue to focus on the things we can control. Through authentic products, great customer experiences and a culture of continuous improvement and innovation, we remain confident of Burberry’s sustained outperformance.”