Tarlok Teji comments on Burberry’s first-half profits.
Burberry is reporting against a weak comparative figure in the prior year of £883m. We would therefore expect them to be up this year, even though the recovery may have only just started to show signs of ‘taking hold’. However, a 17% uplift at £1,031m on the prior year is a good result and demonstrates the strength of the brand and the quality of the management team continuing to do the right things at the right time. This time last year I said that analysts had overreacted by marking the shares down. This performance proves the point. Although Angela Ahrendts is moving on to Apple, she leaves behind a good legacy and we should expect performance to get better as the global economy recovers.