Burberry retail sales were up by 2% underlying to £774m for the six months to September 30 but second quarter sales were hit by the “increasingly challenging environment for luxury, particularly Chinese customers”.
The luxury brand said it has accelerated action to control costs to minimise the impact on profit, which it expects to be between £434m and £461m for the full year.
Wholesale revenue was down 3% to £305m and licensing revenue was down 18% underlying to £26m as expected.
“The external environment became more challenging during the half, affecting luxury consumer demand in some of our key markets,” said Christopher Bailey, chief creative and chief executive officer. “In response, we have intensified our focus on driving sales and productivity, while taking swift action on discretionary costs.
“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.”