• Revenue up to GBP572m
  • HY profits GBP78m
  • Joint venture in India proposed

Luxury goods firm Burberry Group saw profits fall 20% during the first half of the year, including restructuring costs of GBP4.2m relating to the group's cost efficiency programme.

The company also reported that first half operating expenses increased by GBP31m or 350 basis points as a percentage of sales, to 47.4%.

For the six months ended 30 September 2009 Burberry posted total revenue of GBP572m (US$960.6m), up from GBP539m in the same period last year.

The company's profit before tax was GBP78m, down from GBP97m in the prior year period. It posted HY same-store sales growth of 2%.

Burberry said that its non-apparel offering was 34% of revenue, up from 32% in H1 2008.

Children's wear represented 5% of revenue, up from 3% in the prior year period.

Burberry added that retail was 54% of revenue, up from 45% in the first half of last year, and that emerging markets comprised 10% of revenue, up from 9%.

The company also announced that a joint venture in India had been proposed, subject to government approval.

Angela Ahrendts, chief executive officer of Burberry, said: "Burberry delivered a solid first half performance, reflecting the strength of the brand, business and team. We enter the second half confident in our core strategies, capitalising on product, region, channel and operational opportunities. The board has increased the dividend to reflect the momentum in the business."

At its preliminary results in May 2009, Burberry had stated that it expected operating expenses as a percentage of sales to increase in 2009/10.

Click here to view the company's full earnings statement. For further analysis of the results, click here.