Burberry has posted a 19.6% fall in profits. Photo courtesy of Burberry Plc.

Luxury British fashion brand Burberry has reported its first half results today (17 November 2009), showing a fall in pre-tax profits of 19.6% compared with last year.

In its unaudited results for the six months ended 30 September 2009, profits fell to £78.4 million ($131m) from £97m in 2008.

Total revenues were £572m, up 6% on the £539m made a year ago, while like-for-like sales, which removes the impact of new stores, rose by 2%.

The company was pleased with the results however – Angela Ahrendts, Burberry’s Chief Executive Officer, said: “Burberry delivered a solid first half performance, reflecting the strength of the brand, business and team.

“We enter the second half confident in our core strategies, capitalising on product, region, channel and operational opportunities. The Board has increased the dividend to reflect the momentum in the business.”

The revived brand, once known for its ‘chav’ connotations in the UK, will split its clothing brands into three distinct categories – casualwear will come under the label Burberry Brit, workwear and tailoring will be known as Burberry London and its catwalk collection will continue as Prorsum.

Non-apparel lines contributed largely to Burberry’s revenue (34%) and the firm said that larger handbags, “sling” shoulder bags and accessories like snoods and scarves had sold well in all of its markets.

Shoes and childrenswear were also identified as key growth areas, anticipated to grow to make up 10% each of revenues in the medium term.

Burberry also opened 23 directly-operated stores and concessions during the six months, and renovated some of its major stores  – including Bond Street, London, 57th Street, New York and Ocean Centre, Hong Kong.

Finally, the company reported that its global cost efficiency programme was fully implemented, resulting in full year savings of about £50m.

Along with the efficiencies announced in January 2009 (including the closure of Thomas Burberry, the rationalisation of internal manufacturing and driving benefits from investments made in supply chain, IT and infrastructure), six underperforming stores were closed in the period.

In total, headcount has been reduced by over 1,000, and benefits in the first half stand at £22m.