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Tuesday, 19 November, 2002, 18:16 GMT
Burberry checks in strong earnings
Burberry scarves
Burberry floated on the stock market in July
The luxury goods company Burberry - famed for its beige check designs - has reported a better-than-expected set of results.

The company said core earnings for the six months to September rose by nearly a third to �55.1m, beating analysts' forecasts of about �50m.

Profit margins were up, and sales of Burberry's classic womenswear lines helped to drive revenues higher.

Pre-tax profit before one-off costs, which included the cost of Burberry's stock market flotation in July, was �52.2m - also above expectations.

When the costs of the float were included, profits dropped to �26.7m.

"This is a strong performance particularly in light of the difficult trading conditions and demonstrates that the business is on track to achieve the goals set out during the (flotation) process," said chairman John Peace.

Tradition in fashion

Total revenues at the group grew by 15% to �271m, helped by a focus on the US market.

Underlying retail sales rose by 17%, mainly driven by a strong performance from womenswear, where, chief executive Rose Marie Bravo said, the classic lines were very much in vogue.

"It's our traditional categories, outdoor wear, rainwear, accessory ranges, cashmere scarves, day to evening wraps, handbag ranges, some of our classic ranges especially," she said.

However, the company warned that it expected future sales growth would probably be in single digits.

After a strong start to the day, Burberry shares slipped back and ended 11 pence lower at 236p.

See also:

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