Burberry sees profits surge 50%
Fashion house Burberry has reported a 50% profits surge driven by sales of leather handbags and its relaunched menswear business.
The company, famous for its red, black and camel tartan design, said its push for sales of non-apparel items - such as handbags, jewellery, and shoes - was paying off, with revenues in the category up 26% in the first half of its financial year.
Burberry, which took centre stage at London Fashion week in September, said its relaunched menswear business saw sales lift 17% in the six months to September 30.
The luxury clothing company saw pre-tax profits leap to £118m in the first half, from £78.4m last year. Revenues were up 21% at £64m.
Burberry chief executive Angela Ahrendts said the group was confident it could sustain its growth. Burberry said sales in emerging markets - including China, India and Brazil - were up 46% and now account for 13% of total sales, up from 11% last year.
The company bolstered its operations in China in July, by buying out its franchise partner in the country for £70m.
The group said it has a remaining seven stores out of 50 left to transfer to its ownership and management, and expects the move to add £20m to operating profits by 2011/2012.