Burberry reports 50% profit rise - graduate jobs

Graduates looking to break into the fashion industry will be relieved to hear that one of the UK's biggest fashion houses has reported a 50% rise in profits.

Designer label Burberry said its relaunched menswear business and leather handbag range have boosted its sales. The firm's revenues for non-apparel items including handbags, jewellery and shoes were up 26% in the first half of its financial year.

The luxury clothing company known for its red, black and camel tartan design relaunched its menswear line, which includes tailoring and knitwear designs as well as its iconic trenches. The move saw sales lift 17% in the six months to September 30.

Burberry's pre-tax profits jumped to £118 million in the first half, from £78.4 million last year, while revenues were up 21% at £641 million.

Chief executive Angela Ahrendts said the group was confident it could sustain its growth.

Sales in emerging markets - including China, India and Brazil - were up 46% and now account for 13% of total sales, up from 11% last year, it said.

The company bolstered its operations in China in July, by buying out its franchise partner in the country for £70 million.

The group said it has a remaining seven stores out of 50 left to transfer to its ownership and management, and expects the move to add £20 million to operating profits by 2011/2012.

Its retail division saw sales increase 20% worldwide and contributed 57% of total revenues. The company operates from 164 stores, 171 concessions and 45 outlets in 28 countries.