Burberry revenue jumps, sees profits hit by currency headwinds

London, UK - British luxury goods group Burberry said strong sales in China and South Korea helped it to a 19 percent rise in second-half revenue, but that it expected currency headwinds to hit profits in the next two years.

The firm, which sells trenchcoats and leather goods emblazoned with its distinctive camel, red and black check pattern, said on Wednesday total revenue for the six months to March 31 was 1.3 billion pounds (1.3 billion pounds), broadly in line with analysts' average forecast.

The results build upon its strong performance over the crucial Christmas third-quarter of its fiscal year, during which it reported a 14 percent rise in retail revenues.

Retail revenue, which accounts for 70 percent of Burberry's sales, was up 13 percent over the second half at 928 million pounds. Comparable store sales growth was 12 percent, driven by double digit percentage growth in the Asia Pacific as strong demand from Greater China and South Korea continued, it said.

Wholesale revenue excluding beauty rose by 11 percent over the second half while beauty, which the company began directly operating last year, made 93 million pounds in revenue, bringing revenue over the year to 144 million, in line with guidance.

Repeating its January warning over the potential impact of the strengthening of sterling, Burberry said retail and wholesale profit for its full year 2014 could decline by 30 million pounds should current exchange rate levels continue.

It added that this could also have a "material" impact on full-year 2015 profits.