British fashion house Burberry has been revived by rising revenues across the Americas, as full-price sales in the region nearly doubled in the first half of the year.
Revenues in Europe remain 31 per cent down like-for-like on last years figures, while sales remain flat in Asia Pacific region.
However, the firm is maintaining its medium-term guidance for single-digit top line growth.
It remains comfortable with current year market expectations.
The luxury brand’s revenues for the first half of the year reached £1.21bn, recovering to pre-pandemic levels.
The company’s has almost quadrupled its adjusted operating profit to £196m, up from £51m like-for-like in 2020.
Its free cash flow has climbed to £104m, having previously been suffering from negative figures following the pandemic.
Gerry Murphy, chair, said: “We have made strong progress in the half. Full-price sales are growing at a double-digit percentage, driving margin expansion and strong free cash generation. We are seeing an acceleration in performance in countries less impacted by travel restrictions and we remain confident of achieving our medium-term goals.”
Shares fell 5.36 per cent on Thursday, trading at 1,861.50 on the FTSE 100 at close of play.
Burberry will spend £150m buying back its own shares in the second half of the current financial year, ahead of the arrival of new chief executive Jonathan Akeroyd from Versace in April 2022.
He succeeds Marco Gobbetti, who announced his departure in June, midway into a multi-year turnaround to take the brand further up-market.