Burberry 1H Profit Drops in Difficult Luxury Environment

The transcript discusses Burberry's financial performance, highlighting the impact of foreign exchange rates, particularly the strength of the pound and the depreciation of the yen, on their sales and profits. Despite a 7% increase in sales, profits fell by 12%. The company is investing in marketing, including high-profile campaigns with Cara Delevingne and Kate Moss, and launching new products like fragrances. Challenges in Asia, such as protests in Hong Kong, have affected luxury brands, but Burberry is focusing on growth areas like beauty and digital innovation, including personalization and interactive experiences.

How did foreign exchange fluctuations impact Burberry's financial performance in the first half of the year?

• Increased sales by £75 million

• Had no impact on sales

• Increased profit by £31 million

• Reduced sales by £75 million

What was one of the strategic investments Burberry made to drive growth?

• Opening new stores in Europe

• Focusing solely on clothing

• Launching a new line of fragrances

• Reducing marketing expenses

Which celebrities were involved in Burberry's marketing campaigns?

• Naomi Campbell and Gigi Hadid

• Romeo Beckham and David Beckham

• Kendall Jenner and Bella Hadid

• Cara Delevingne and Kate Moss

What external factor affected luxury brands like Burberry in Asia?

• Economic boom

• Protests in Hong Kong

• Increased tourism

• Currency stabilization

What is Burberry's approach to digital innovation?

• Reducing online presence

• Exploring personalization and digital boundaries

• Focusing on traditional advertising

• Avoiding digital platforms