Burberry’s chief executive Christopher Bailey is confident the luxury group can notch up a strong Christmas, despite unveiling a lacklustre first half held back by trading in China.
Mr Bailey said the company has its “strongest-ever festive plans” in place as it announced a pick-up in store sales. The fashion house said sales of trench coats, ponchos and scarves outperformed in the six months to 30 September, and are likely to do well over Christmas. Burberry teddy bears, which cost up to £1,000 each, as well as its candles and cushion covers are high on its shoppers’ gift lists, it added.
Burberry’s Christmas advert, featuring Sir Elton John and Julie Walters among others, has already been viewed more than 20 million times since its launch last week.
Pre-tax profits rose 9 per cent to £155m in the six months to 30 September, while sales were flat at £1.1bn but improved in the third quarter. The designer had warned in October that the slowdown in China had hit sales, prompting it to predict a fall in full-year profits.
It left its forecasts unchanged but said sales in Hong Kong had improved in recent weeks.
The shares rose initially but ended down 22p at 1,313p. Analysts at Bank of America Merrill Lynch noted: “Our recent trip to China suggests there’s been little improvement in luxury trends over the most recent months, which keeps us cautious on the sector and Burberry is no exception.”
