Net profit in the six months ended Sept. 30 slid 36 percent to $25.3 million from $39.3 million due to exceptional charges linked to Burberry’s initial public offering in July. However, the company said those charges will have no cash impact and no impact on the company’s net asset value.
The firm said in a statement Tuesday that excluding the exceptional costs — chiefly attributable to an employee share-ownership plan — profit after taxation would have been $52.6 million, representing a 34 percent rise over the corresponding period last year.
Sales for the six months rose 15 percent to $432.4 million from $375.1 million. Excluding currency fluctuation and the impact of Burberry’s recent acquisitions in Asia, sales would have risen 9 percent.
This is the first time that Burberry has released detailed first-half results as a publicly listed company. Dollar figures have been converted from the pound at current exchange rates.
Rose Marie Bravo, chief executive, said she was pleased with the results. "Under the current market circumstances, we’re doing well and we’ve had a busy first half. We’ve opened three flagships, bought back our Asian businesses and done an IPO. Today’s results are a tribute to the Burberry team," she said.
Claire Kent, luxury goods analyst at Morgan Stanley, said the results beat her expectations. "The results were great, better than expected," said Kent, who had forecast operating profit, or EBITA — defined by Burberry as earnings before interest, taxation, IPO-related and other exceptional items, and goodwill amortization — of $79 million, while Burberry came through with $87.1 million, up 32 percent from year-ago levels.
"Burberry is bucking the general negative trend for the sector. Sales growth of 15 percent is very impressive in this kind of climate," Kent added.
Sales growth came chiefly from accessories and women’s wear, which both posted double-digit increases. Accessories grew by 26.2 percent to $119.3 million from $94.5 million, while women’s wear climbed 16.7 percent to $144.6 million from $123.9 million.