Operating profit at Burberry fell by six percent to £223 million in the six months to 30 September 2023, which the luxury brand blamed on rising inflation and increased investment.

In a financial report, the fashion retailer said that while it was confident it would hit long term targets, a global slowdown in demand for luxury goods is impacting its current trading. Should this continue, Burberry said it is unlikely to achieve its revenue target of double digit for the next calendar year.

The company said that it had benefitted from strong trading in core categories leading to a four per cent increase in its half-year revenue which came in at £1.396 billion.

Sales of outwear increased by 21 per cent over the six-month period, with leather goods jumping by eight per cent over the same period of 2022.

Sales increased by 10 per cent and two per cent in Europe and Asia Pacific respectively, while weak trading in the US saw sales down by 10 per cent.

"We made good progress against our strategic goals, executing our priorities at pace,” said Jonathan Akeroyd, chief executive of Burberry. “We continued to build momentum around our new creative vision with the launch of our Winter 23 collection in September, the first designed by Daniel Lee.”

He added: “While the macroeconomic environment has become more challenging recently, we are confident in our strategy to realise our potential as the modern British luxury brand, and we remain committed to achieving our medium and long-term targets."

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