Burberry Group H1 Net Profit Drops

Burberry Group PLC

reported a drop in its half-year profit. Burberry Group's pretax profit for the period declined to 141.8 million pounds ($226.6 million), compared to GBP159.0 million, in the year-ago period. On an adjusted basis, the company's pre-tax profit rose 6% on an underlying basis to 152.3 million pounds. Profit attributable to owners of the company slipped to 104.5 million pounds from 112.7 million pounds, while earnings per share fell to 23.4 pence from 25.2 pence. On a non-GAAP basis, Burberry Group's earnings per share came in at 25.4 pence. Its revenue rose to GBP1.1 billion from GBP1.0 billion. Retail sales gained 15% on an underlying basis, while wholesale revenue rose 13% on an underlying basis. Licensing revenue slipped 3% on an underlying basis. During the first half, the adverse impact of exchange rate movements lowered revenue by £69 million and profit by £25 million. The company raised its interim dividend by 10% to 9.7 pence. Christopher Bailey, Chief Creative and Chief Executive Officer, said, “Looking ahead, in a more difficult external environment, we continue to focus on the things that 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.” Burberry Group shares rose 0.79% to close at $48.48 yesterday.