Over the first six months of the year, British fashion label Burberry managed a higher profit than what analysts had expected. Huge cost-cutting measures helped achieve that, as turnover remained level.
Difficult Chinese situation
Analysts had expected Burberry's EBITDA to drop to 144 million pounds (204 million euro), but it actually grew 3 % to 152.9 million pounds (216.8 million euro).
Total turnover remained level compared to a year ago, at 1.1 billion euro (1.6 billion euro). On the other hand, Burberry managed to increase its profits, through several cost-cutting measures and lower bonuses.
The company does remain cautious about the future, as it mentioned the challenging situation in China and the low growth potential in the United Kingdom even though it represents a third of total turnover. The reason is that the pound is too strong compared to the euro.