Handbags before glad rags for Burberry

Published on Tuesday 17 November 2009 20:52

LUXURY goods firm Burberry yesterday said it was targeting growth in non-clothing ranges such as shoes and handbags in the expectation of economic recovery, as it posted a smaller-than-forecast fall in first-half profit.

The 153-year-old group, sketching out its plans for the next three years, also said it wants to boost its presence in China and the Americas and attract younger shoppers.

Chief executive Angela Ahrendts said: "While the last year or so has presented us with the most challenging conditions we've ever had to work through, we have been equally focused on how best to position Burberry for superior growth when the global economy recovers."

The group – praised by commentators after it returned to the catwalk at London Fashion Week this autumn – said operating profit before one-off items fell 19 per cent at constant currencies to 86.3million in the six months to September.

Despite the slide, the half-year dividend was raised 4 per cent to 3.5p a share.