Exchange rates hit profits at Burberry

LUXURY BRAND Burberry said the impact of foreign exchange rates would fade after weighing on profit and sales in the first half of its financial year.

By Bernard Ginns, Business Editor

Published 12th Nov 2014, 15:16 BST

Romeo Beckham in the new Burberry campaign

The fashion company, which has launched a high-profile Christmas campaign featuring 12-year-old Romeo Beckham, son of footballer David and designer Victoria, said trading remained tough, “with pockets of weakness in Europe”.

Burberry reported a 12 per cent drop in profit before tax for the six months to September 30 to £142m, which was broadly in line with market forecasts.

The company has strong links with Yorkshire.

Christopher Bailey, from Halifax, took over as chief executive in May, combining the role with that of chief creative officer.

Burberry employs more than 700 people in the region, with the vast majority at its busy factory in Castleford where it manufactures outerwear, including the iconic trenchcoat.

The company weaves gabardine fabric and heritage check linings at the Burberry Mill in Keighley.