Burberry Smells Success

Burberry is smelling success with a 14 per cent rise in underlying first-half sales, helped by strong international retail expansion and its new Burberry Brit men's fragrance. The sales figure was broadly in line with market expectations and, taking currency effects into account, reported sales were up 8 per cent. Underlying retail sales increased 12 per cent on new store openings in America and Korea, the company said.

Wholesale revenues, which accounted for 57 per cent of total income in the period, increased 13 per cent with good performance in the US but offset by modest growth in Europe. "We were particularly encouraged by the 31 per cent gain in our licensing channel, partially driven by the highly successful launch of Burberry Brit for men," said chief executive Rose Marie Bravo. Ms Bravo has been credited with turning around the brand and is due to stay in charge for at least another two years, the company said earlier in the year. Burberry is expected to achieve a full-year pretax profit of £160m.