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Burberry H1 Results Rise, Backs Outlook; Resumes Dividend; Stock Down

Retailer Burberry Group plc (BRBY.L) reported higher profit and revenues in its first half, and maintained medium term view. The company also resumed dividend, and recommenced share buyback program. The shares were losing around 9 percent in the early morning trading in London.

The first-half profit before taxation more than doubled to 191 million pounds from last year's 73 million pounds.

Earnings per share were 35.7 pence, up from 12.2 pence a year ago. Adjusted earnings per share were 33.5 pence, compared to prior year's 4.6 pence.

Revenue for the period climbed 38 percent to 1.21 billion pounds from last year's 878 million pounds. The revenue growth was 45 percent at constant currency rates. The company said revenues are back at pre COVID-19 levels at constant exchange rates.

Retail comparable store sales grew 37 percent in the first half, while the growth was 6 percent in the second quarter, compared to 90 percent in the preceding first quarter.

Looking ahead, the company maintained medium-term guidance for high single-digit top line growth and meaningful margin accretion. The company also confirmed that it is comfortable with current year market expectations.

Further, the company said it has resumed payment of the interim dividend at 11.6p per share, an increase of 3 percent over last year.

The company also recommenced the share buyback programme, and expects to complete 150 million pounds buyback in second half of fiscal 2022.

In London, Burberry shares were trading at 1,793 pence, down 8.85 percent.

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