---Burberry is a leading English designer and maker of lifestyle clothing and handbags.Burberry products are made
of water-proof,breathable fabric.
The luxury fashion house said pre-tax profits fell from £159m to £112m in the six months to September 30.The fall was after a £71m exceptional charge following Burberry’s decision to take control of its fragrance and beauty products from licensees, so that it can operate the division in-house.burberry outlet online shares fell 53p – 4.2pc – to £11.99, with investors unnerved by the uncertain outlook for the luxury market ahead of the key Christmas period.Ms Ahrendts said the slowdown in luxury sales had been worldwide and led by a drop in footfall among “first-time” luxury customers looking to buy polo shirts or denim products.
A new survey from Bain & Co, the management consultants, has cut the expected rate of annual growth in the luxury market from 6-8pc, to 4-6pc. However, Ms Ahrendts said: “It is still nice growth. We are not going to whine about it.”Burberry still plans to press ahead with its scheduled investment and growth, which included £89m of capital expenditure over the last six months. It reviewed its spending plans on the back of September’s profits warning.The retailer is focusing on opening stores in 25 leading global cities, such as London, New York, and Hong Kong. Ms Ahrendts said: “We are going to stay in our lane. Steady wins the race.”
Despite the pressures on Burberry, Gregor Jackson, partner at luxury brand consultancy gpstudio, said the company was making progress.
He said: “The rise – of some 40pc – in menswear accessories sales and the focus on the beauty ranges suggests management has found a sustainable way to bring in the 'mass affluent’ customer, who may spend less per transaction but offer a lucrative high-volume sales base.“Critically, while Burberry has found ways of reaching a far wider base – growing its global footprint in developing markets and attracting a broader audience in the Far East and Western territories – sales in its super-premium ranges remain strong.”