The British luxury fashion house Burberry Group Plc has closed the first half of the 2022/23 financial year with surprisingly good results. In an interim report published on Thursday, the company also presented a new, ambitious growth target for the coming years.
In the 26 weeks leading up to October 1, Burberry generated sales of almost £1.35 billion (€1.53 billion), exceeding the corresponding prior-year level by 11 percent. Adjusted for exchange rate changes, revenues increased by five percent.
The engine of growth was own retail with a plus of twelve percent (currency-adjusted +6 percent) to 1.06 billion British pounds. Losses as a result of the tightened Covid-19 protective measures in China were more than offset by strong increases in other regions. In the wholesale business, sales were 263 million pounds sterling, up 6 percent (currency-adjusted +1 percent) on the corresponding prior-year level, while license income grew by 6 percent (currency-adjusted +8 percent) to 21 million pounds sterling.
Thanks to higher margins, earnings grew even more dynamically. Operating profit was £263 million, up 27 percent over the first half of last year. Adjusted for special effects, the operating result increased by 21 percent to 238 million pounds sterling. The bottom line was a surplus attributable to shareholders of £193 million (€220 million). Compared to the same period last year, this meant an improvement of 33 percent.
In view of the latest development, the fashion house set a new growth target: In the medium term, it now wants to increase its currency-adjusted annual sales to four billion British pounds. Annual growth in the high single-digit percentage range is targeted. At the same time, the company aims to further increase its margins.
A creative realignment under the direction of the new chief designer Daniel Lee, who succeeded Riccardo Tisci in September, is also intended to contribute to the company’s economic success. In the future, the luxury label wants to put its “Britishness” in the foreground again and strengthen the connection to design, craftsmanship and culture of the home country.