Burberry’s First-Half Adjusted Operating Profit Rises to £62 Million

The improvement was not simply a rise in demand. Burberry generated more revenue without a corresponding increase in operating costs, allowing more of its sales to reach profit. Adjusted operating margin rose to 5.7% from 1.9%.

Reported operating profit, after restructuring charges, reached £54 million, reversing an £18 million loss. “Today, our brand and our business are stronger,” chief executive Joshua Schulman said. Comparable retail sales rose 4%, with no contribution from additional selling space.

That points to better performance from the existing retail business rather than growth through expansion. Ecommerce grew at a mid-teens rate, while wholesale revenue increased 17% at constant exchange rates, exceeding guidance. Demand remained uneven.

The Americas grew 12%, driven primarily by local customers, and Greater China rose 7%. Asia Pacific increased 3%, but Europe, the Middle East, India and Africa declined 2% as weaker tourism and store traffic weighed on sales…