LONDON, United Kingdom — Britain’s Burberry reported a 21 percent underlying drop in pretax profit to £462 million, dragged down by weak wholesale demand in the United States, and showing the challenge facing Marco Gobbetti when he becomes CEO in July.
The luxury group, which is known for its trench coats, has benefited from the drop in the value of the pound in the last year, resulting in a 10 percent gain in adjusted profit at reported exchange rates.
It said this effect would reverse in the current year, with an adverse impact of about £30 million.
Analysts were expecting the company to report adjusted pretax profit of £460 million, according to a company-supplied consensus.
They expect pretax profit to edge up to £468 million for the current year.
By Paul Sandle; editor: Kate Holton.