Adjusted pretax profit fell 4 percent to £146 million ($182 million) in the six months through September, the London-based company said in a statement Wednesday. Analysts expected £145.3 million. The drop was 24 percent excluding currency shifts.
Burberry said it is on track to meet its financial goals for the year. The British trench coat maker is still grappling with ebbing demand in key luxury hubs like Hong Kong. The industry has been weighed down by years of weakening demand in China, while terrorist attacks in Europe have reduced tourism flows to the region.
Burberry also repeated that the weakness of sterling will add about £125 million to full-year profit, based on recent exchange rates.
By Corinne Gretler; editors: Matthew Boyle, Paul Jarvis and Thomas Mulier.