LONDON--Luxury clothing company Burberry Group PLC on Wednesday
reported a rise in second-half sales, helped by online growth, but
said it expects currency movements to hurt profit.
Revenue for the six months ended March 31 rose 19% from the same
period last year to GBP1.3 billion ($2.2 billion), the company
said, adding that footfall in stores remained soft but online
traffic grew.
However, Burberry cautioned that current exchange rates would
have a "material adverse impact" on 2015 profit. As an indication,
the company said rebasing full-year 2014 retail and wholesale
profit for current exchange rates would reduce earnings by about
GBP30 million.
"While current exchange rates are a material headwind in what
remains an uncertain macro environment, our continued global brand
momentum provides an excellent foundation for the future," said
Chief Executive Officer Angela Ahrendts. Ms. Ahrendts is set to
leave Burberry soon to become retail chief at Apple Inc. and will
be replaced by Christopher Bailey, now chief creative officer.
The warning on currencies follows similar comments from the
company in January that it would be affected by the strengthening
of the British pound because it costs more to translate dollars and
euros back into sterling.
Write to Rory Gallivan at rory.gallivan@wsj.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires