Accessorise all areas the aim for Burberry

Nov 18 2009 By The Journal

LUXURY goods firm Burberry has posted a 19% profits fall but said its performance was solid, helped by strong demand for handbags and scarves.

Pre-tax profits were £78.4m in the six months to September 30, down from £97m last year as the effects of discounting hit margins and wholesale orders were reduced.

The firm, praised by commentators after the fashion house returned to the catwalk at London Fashion Week this autumn, said it had seen exceptional growth in London stores after the weak pound attracted foreign shoppers.

Burberry said it now planned to split its clothing brands into three distinct categories – casualwear will come under the label Burberry Brit, workwear and tailoring will be known as Burberry London and its catwalk collection will continue as Prorsum.

After shrugging off its links with chav culture in the UK in recent years, the brand has regained its upmarket reputation.

The firm, founded in 1856, opened a children’s store in Notting Hill during the period. It said its policy of focusing on its retail stores had started to pay off, with this now accounting for 54% of all sales.