Burberry backs guidance, hails 'exceptional' response to Tisci collection

Luxury fashion brand Burberry said on Thursday that the response to new creative head Riccardo Tisci's 'Kingdom' collection has been "exceptional" as it posted a rise in interim like-for-like sales.

In an update for the 26 weeks to 29 September, the company said LFL retail sales edged up 3%, down from a 4% rise in the same period a year ago but in line with consensus. Meanwhile, total revenue was down 3% to £1.22bn and reported operating profit rose 36% to £173m, which was a touch higher than company-compiled consensus of £169m.

Pre-tax profit in the half was up 36% to £174m and Burberry left its interim dividend unchanged at 11p a share.

The company maintained its full-year guidance for broadly stable revenue and adjusted operating margin at constant exchange rates, and delivery of £100m cumulative cost savings.

Chief executive officer Marco Gobbetti said: "We are energised by the early results as we begin to transform and reposition Burberry. The initial response from influencers, press, buyers and customers to our new creative vision and Riccardo's debut collection Kingdom has been exceptional.

"Mindful that we are only in the first phase of our multi-year plan, we continue to manage dynamically through the transition. We confirm our outlook for the full year."