Burberry hails ‘exceptional response’ to its new fashion lines

Social media influencers, the press, consumers and buyers have given Burberry’s refreshed ‘creative vision’ the seal of approval, the high-end fashion retailer claims.

The firm, which is undergoing a multi-million pound transformation plan, said it had enjoyed an ‘exceptional response’ to its new lines and look.

In the six months to 29 September, Burberry’s total year-on-year sales fell by three per cent to £1.22billion. 

Sales: In the six months to 29 September, Burberry's total year-on-year sales fell by 3 per cent

Sales: In the six months to 29 September, Burberry's total year-on-year sales fell by 3 per cent

Sales: In the six months to 29 September, Burberry’s total year-on-year sales fell by 3 per cent

That’s not the full story, however. Like-for-like in-store sales increased by three per cent, spurned on by decent growth in the firm’s crucial Asian market.

Higher like-for-like sales in stores included growth in the UK, despite concerns of weaker consumer demand and lower tourist spend. 

Pre-tax profits increased by 36 per cent to £174million over the period, after taking into account £33million worth of restructuring costs and £28million linked to the disposal of its beauty arm. Analysts had forecast profits to come in at around £169million.  

The interim results follow new creative director Riccardo Tisci’s debut collection, called ‘Kingdom’. 

Investor reaction to Burberry’s interim results has been upbeat and the company’s share price is up 3.54 per cent or 64.25p to 1,880p this afternoon.

The group has maintained its dividend at the same level of 11p a share. 

Naeem Aslam, an analyst from Think Markets said: ‘Burberry has proven one thing that hiring the right person for the right job matters a lot.’

He added: ‘Designer Ricardo, is the hope for the company and his collection has received exceptional response despite the fact that most products won’t reach stores until February. The company styled ad campaign resonated with its lovers.’

On the subject of share price, Mr Aslam said: ‘The price is trading above the 200,100 & 50-day moving average, this confirms that the price is bullish.’ 

Upbeat: Investor reaction to Burberry's interim results has been upbeat and the company's share price is up 3.54 per cent

Upbeat: Investor reaction to Burberry's interim results has been upbeat and the company's share price is up 3.54 per cent

Upbeat: Investor reaction to Burberry’s interim results has been upbeat and the company’s share price is up 3.54 per cent

Marco Gobbetti, Burberry’s chief executive, said the company was ‘energised’ by early results of the transformation process.

‘Mindful that we are only in the first phase of our multi-year plan, we continue to manage dynamically through the transition,’ he said.

The group confirmed its outlook for the full year. 

The company is in the process of closing some shops and pulling out of department stores as it targets high-end shoppers. 

Fresh fashion: The interim results follow new creative director Riccardo Tisci's, pictured, debut collection, called 'Kingdom'

Fresh fashion: The interim results follow new creative director Riccardo Tisci's, pictured, debut collection, called 'Kingdom'

Fresh fashion: The interim results follow new creative director Riccardo Tisci’s, pictured, debut collection, called ‘Kingdom’

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