// Burberry strategy “on track” despite Hong Kong protests
// In the half-year to September 28, revenues increased 3% to £1.28m
// Comparable store sales were up 4% thanks to new collections
Burberry has maintained that its new strategy is “on track” despite the recent Hong Kong protests denting sales.
The British luxury retailer reported a pro forma adjusted operating profit of £187 million, down four per cent at constant exchange rates, in the half-year to September 28.
Revenues increased three per cent to £1.28 million and comparable store sales were up four per cent thanks to new collections.
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The months of protests in Hong Kong has affected the company but the group still managed to increase adjusted operating profit by 14 per cent in the first six months of the financial year.
However, Burberry said it expects sales in Hong Kong to “remain under pressure” after revenue declined by double digits in the city.
“Adverse macro-economic conditions or country-specific civil unrest, for example in Hong Kong, may impact spending habits of key consumer groups such as the Chinese consumer and cause increased operational costs,” Burberry said in a statement.
Chief executive Marco Gobbetti said: “We are pleased with our performance in the half as we remain on track to deliver the first phase of our strategy. New product now represents a high proportion of our assortment and the customer response has been positive delivering strong double-digit growth.
“We also continued to strengthen momentum around our brand and transform our distribution. We delivered financial results in line with guidance despite the decline in Hong Kong and we confirm our outlook for the 2020 financial year.”
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