Burberry profits rise despite Hong Kong protests ‘dampening’ sales

Burberry has posted pre-tax profit of £193m for the half-year to 28 September, despite recent protests in Hong Kong dampening its sales.

Months of protests in Hong Kong have affected the British retailer, but it still managed to increase adjusted operating profits by 14% in the first half of the financial year and added it is still “on track”.

Revenue also increased by 3% in the first half to £1.28m, as retail comparable store sales rose by 4% due to the new collections.

The group also expects sales in Hong Kong to “remain under pressure” due to the protests.

In a statement, Burberry said: “Adverse macroeconomic 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.”

Marco Gobbetti, chief executive officer of Bubrerry 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.”

He added:“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 FY 2020.”

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