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Burberry's Profit Falls After Perfume Hit

(c) Sky News 2012
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Cara Delevingne, Jourdan Dunn and Edie Campbell Are Burberry's New Beauties

Keep it on the down low girls, but here in the Grazia Beauty Department we do rather like to think of ourselves as Burberry girls (if they don’t mind so very much)

Burberry reports a fall of almost 30% in profit in the first half of this year, but its revenue beat expectations despite a slowdown in demand from Asia.

It said pre-tax profit over the six months to the end September was £112m - which includes one-off items worth £61m - compared with £159m for the same period in 2011.  

But the luxury fashion brand's underlying business, if the one-exceptional charges are stripped out, performed better than expected, with pre-tax profit up 6% at £173m.

Last month the luxury fashion firm reassured investors that sales had steadied towards the end of its second quarter after issuing a shock profit warning in September.

Burberry's first-half revenue was up 6% to £883m, but growth slowed to 5% in the second quarter, compared with 11% in the first.

Its (Euronext: ALITS.NX - news) retail revenue also grew - up 9% to £577m - despite what chief executive Angela Ahrendts described as a "challenging external environment".

The exception items included a one-off charge related to the termination of a fragrance and beauty licence deal, as Burberry plans to bring its perfume business in-house. 

Ms Ahrendts said this marked a "significant brand and business opportunities".

"Our global teams are excited to partner with long-standing distributors, suppliers and customers to optimise these under-penetrated categories," she said.

"One consistent brand expression, leveraged across all categories, will underpin future growth in the beauty division and our existing core business."

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