The luxury fashion brand Burberry revealed it is clothing a new "mini-me" generation, as its half-year profits tumbled by a fifth.
Burberry said its childrenswear revenues jumped by nearly 50 per cent, driven by parents dressing their kids in the brand. Stacey Cartwright, the firm's finance director, said: "The brand lends itself to the mini-mes, [with its] mini trench coats and mini wellies."
Over the six months to 30 September, Burberry's pre-tax profits fell to £78m from £97m a year ago, largely because of a 23 per cent drop in underlying wholesale revenues. But its total sales rose by 6 per cent to £572m over the half-year, boosted by a robust performance from its retail division. Ms Cartwright said its five London stores were doing "exceptionally well" as shoppers from Europe and China take advantage of the fall in sterling.
Burberry said it generated net cash of £56m in the first half, compared to a net debt, or cash outflow, of £114m last year. The interim dividend rose by 4 per cent to 3.50p.Reuse content