Burberry says foreign exchange impact to fade

* Burberry H1 profit before tax drops 12 percent

* Says foreign exchange will not impact H2 profit

* Demand from Chinese, Russians remains weak (Adds management comments, details, updates shares)

By Astrid Wendlandt

PARIS, Nov 12 (Reuters) - British luxury brand Burberry said the impact of foreign exchange rates would fade after weighing on profit and sales in the first half of its financial year.

The fashion company, which has launched a high-profile Christmas campaign featuring 12-year-old Romeo Beckham, son of soccer star David and designer Victoria, said trading remained tough, "with pockets of weakness in Europe."

Burberry reported a 12 percent drop in profit before tax for the six months to Sept. 30 to 142 million pounds ($225 million), which was broadly in line with market forecasts.

Foreign exchange rates shaved off 75 million pounds in revenue and 31 million pounds in profit in the company's fiscal first half but should become less of a factor in the months to come, the company said.

"At current rates, we do not expect foreign exchange to have a material impact on underlying profits for the second half," Burberry Finance Director Carol Fairweather told a conference call with journalists.

Burberry shares were down just over 1 percent at 1510 pence by 1146 GMT.

Burberry said demand from the Chinese, which fell significantly in recent months, had not really improved while spending by the Russians, which have seen the value of the rouble collapse in the past week, also remained lower.

However, the company said it continued to trade better than many of its peers in China, where it bought out franchise partners three years ago and where sales were up more than 10 percent in comparable terms.

Burberry gave a detailed presentation of a digital strategy which it described as one of its main competitive advantages.

The brand said it had 18 million followers on Facebook (NasdaqGS: FB - news) and 140 of its more than 500 stores worldwide were equipped to let people come in and collect items they had ordered online.

"Burberry is as much a tech company as it is a luxury fashion house," Chief Operating Officer John Smith said.

The Christmas season is the first since Christopher Bailey took over as chief executive at Burberry in May, combining the role with that of chief creative officer.

"We think we have never been better positioned for the festive period," Fairweather said. (1 US dollar = 0.6283 British pound) (Editing by Keith Weir)