Burberry H1 profit falls due to end of fragrance licensing pact; shares up on higher sales
LONDON – Costs associated with the end of a perfume licensing agreement dented first-half profits at luxury fashion company Burberry.
For the six months ending Sept. 30, Burberry saw its net profit fall to 85 million pounds ($136 million) from 117 million pounds a year earlier. The big difference was a charge of 73.8 million pounds related to the cost of terminating a fragrance and beauty licensing relationship with French-based Interparfums.
Burberry says Wednesday it expects to benefit eventually from directly controlling its fragrance and beauty line.
Revenue was up 6 per cent to 883 million pounds, with same-store sales rising in all regions.
Burberry shares were up 1.8 per cent at 1,274 pence in early trading in London.