LONDON?Burberry Group PLC reported a 40% drop in first-half profit amid higher costs, underscoring the continued challenge for Chief Executive Christopher Bailey even as the company said it is making progress on the turnaround plan announced in May.
The British luxury house said pretax profit for the first six months of the year was £ 72 million ($90 million), compared with £ 119.5 million a year earlier as results were weighed down by one-time charges and input costs climbed.
Burberry reported adjusted earnings a share of 24.4 pence, compared with 26 pence in the same period last year, slightly below analysts' expectations of 25 pence, according to a poll by data provider FactSet.
Burberry last month reported revenue of £ 1.16 billion for the six months ended Sept. 30, up 5% from a year earlier, as the company benefited from the falling pound. However, excluding currency swings, the company reported a 4% decline in underlying revenue, while same-store sales were flat.
"In May, we outlined plans to evolve how we work as a business and to drive Burberry's future growth in a rapidly-changing luxury environment," said Mr. Bailey. "Since then, we have made good early progress toward realizing the significant opportunities ahead of us."
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(END) Dow Jones Newswires
November 09, 2016 03:05 ET (08:05 GMT)
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