Retail drives 27 pct profit gain for Burberry

AP News
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Posted: Nov 15, 2011 7:45 AM
Retail drives 27 pct profit gain for Burberry

Luxury goods company Burberry says its profit was up 27 percent in the six months ending Sept. 30 as retail contributed a growing share to sales and profit.

Burberry on Tuesday reported a net profit of 117 million pounds compared to 83 million pounds a year earlier. Revenue was 30 percent higher at 830 million pounds.

The company's retail outlets reported a 45 percent gain in underlying sales; retail accounted for 64 percent of Burberry's revenues in the six months, compared to 57 percent a year earlier. The other key components of revenue are wholesale and licensing.

Burberry shares were down 2.7 percent at 1,382 pence in early trading on the London Stock Exchange. However, its share price has risen by a third in the six weeks or so to Nov. 14.