British luxury house Burberry, which last week announced the departure of its president and chief creative officer Christopher Bailey, has announced double-digit profit growth in the first half of its financial year.
In the six months ending 30 September the business achieved an adjusted operating profit of £185m (up 14.6%) on revenues up 4% at £1.26bn.
The business cited improvements in beauty profitability and a strong performance in rainwear and leather goods, as well as good reaction to “fashion and newness” in its ranges, as factors behind its improved figures.
It also said it had made good progress with its on-going plan to reduce costs in the business and said it had achieved £20m incremental cost savings (£40m cumulative savings to date).
New CEO Marco Gobbetti, who officially took up his role in July, said: “I am pleased with our performance in the half with strong double-digit underlying profit growth. Consumers responded positively to fashion and newness, particularly in rainwear and leather goods. Digital revenue grew in all regions, led by mobile, while growth was strongest in our own stores in Asia Pacific. I look forward to building on our strong foundations as we implement our strategy to drive Burberry forward.”
Last week the business revealed that Bailey, who has been with Burberry for 17 years, would be leaving next year. He will stand down from the board next Spring and will work with Gobbetti on a transition period until the end of the year. Speculation is mounting that he will be replaced by Celine creative director Phoebe Philo, who worked with Gobbetti while he was CEO of the LVMH-owned French fashion house.