Burberry Medium Term Profit Dropped Sharply Due To Market Downturn 24%

Britain

group

Group PLC Boboli group's UK stock market announced interim earnings before opening, as authorized revenue declined and Hongkong and the United States' two largest market downturn dropped 24%, but the situation is in line with the group and

Expect.

Burberry Group PLC (BRBY.L) followed the global market which was dragged down by Donald Trump Donald Trump and won the US presidential election, and its decline rapidly expanded to 3.9% after opening 2.5%.

As of Tuesday, 8, the stock recorded a cumulative increase of 23% in 2016.

The adjusted pre tax profit fell from 152 million 900 thousand pounds in the same period last year to 146 million 200 thousand pounds, slightly better than the market expectation of 145 million 300 thousand pounds, accounting for 29 million pounds in the exchange rate floating, narrowed to 4.4% after the favorable effect, adjusted EPS, also reduced from 26 pence in the same period last year to 24.4 pence, less than FactSet's comprehensive forecast of 25 pence.

Despite shrinking profits, the group decided to raise its interim dividend by 2.9% to 10.5 pence per share, 10.2 pence a year.

The group reaffirmed that the depreciation of the pound would increase about 125 million pounds in the whole year and maintain its financial target after October.

According to the website's report in mid October, Burberry Group PLC Bob Bailey's revenue in the first half of fiscal year increased 4.9% to 1 billion 158 million 500 thousand pounds, and dropped 4% after excluding the exchange rate effect.

Retail revenue rose by 11% to 859 million, while the fixed exchange rate increased by only 2%.

The two quarter benefited from the depreciation of the British pound, which promoted a 30% surge in sales in the UK and a 2% increase in the same store, which basically offset the 3% decline in the first quarter, making it the same as last year's sales in the same period last year.

Like the whole industry, the group rebounded in the two quarter of 7-9 in the mainland of China. The same store sales growth recorded in the median figure was the best in the past year, but it failed to offset the double-digit same store sales decline in the Hongkong market.

Analysts believe that the trend of Burberry Group PLC boboley on the mainland is significantly weaker than that of LVMH SE (LVMH.PA), Kering SA (KER.PA) Kai Yun group and Herm s s (PLC), Hermes international, and most luxury groups have achieved better performance than the market expectations in the past one or two seasons.

The weakness of the European market is mainly due to the sharp contraction in the consumption of tourists from China and the Middle East. The number of same store sales in the US market has dropped, and the strength of the US dollar has weakened the consumption desire and purchasing power of tourists.

Wholesale business continued to deteriorate. In the first half of the year, it only realized 287 million pounds income, a decrease of 6% compared with the same period last year, and the fixed exchange rate fell by 14%.

The authorized revenue fell by half, from 26 million 100 thousand to 12 million 800 thousand, mainly because the group ended the Japanese authorized business that contributed 50% revenue to the Department to consolidate its luxury brand positioning.

The adjusted operating profit of retail and wholesale businesses registered an increase of 2.9%, while the fixed exchange rate dropped by 19% to 133 million 500 thousand pounds, while authorized business profits also halved to only 11 million.

The group's chief financial officer, Carol Fairweather, said last month that the group did not plan to raise its price in the UK market. Because of the depreciation of the pound, Chinese consumers in the two quarter to Burberry Burberry, Boboli, rose by 20%, while the number of tourists from the United States also rose, driving the proportion of the British market in the first half of the fiscal year to 15% from the previous one.