Burberry reinstates dividend as revenues return to pre-pandemic levels

Luxury fashion brand Burberry said on Thursday that revenues are now back at pre-Covid levels, as it reported a jump in interim pre-tax profit and reinstated its dividend.

In the 26 weeks to 25 September, pre-tax profit rose to £191m from £73m in the same period a year ago, while adjusted pre-tax profit came in at £180m versus £36m. Revenues grew 45% to £1.2bn.

Burberry said the Americas, mainland China and South Korea delivered strong double-digit growth, while other regions were under pressure from reduced tourist levels.

The retailer maintained its medium-term guidance for high single-digit top line growth and "meaningful" margin accretion and said it was comfortable with current year market expectations.

The company reinstated its interim dividend at 11.6p, which is 3% ahead of FY20 levels and recommenced the share buyback with £150m planned.

Chair Gerry Murphy said: "We have made strong progress in the half. Full-price sales are growing at a double-digit percentage, driving margin expansion and strong free cash generation. We are seeing an acceleration in performance in countries less impacted by travel restrictions and we remain confident of achieving our medium-term goals.

"I would like to thank Marco Gobbetti for his vision and leadership of Burberry's transformation. We are very excited that Jonathan Akeroyd is joining as our new CEO in April to build on the strong foundations to accelerate growth and deliver further value for our shareholders."