Burberry adjusted profits up 6%

However, a one-off £73.8m payment to end a fragrance and beauty licence led to pre-tax profits dropping 30% to £112m.

Retail revenue grew 10% to £577m and accounted for 65% of revenue in the luxury retailer’s first half as like-for-like sales rose 3%.

The retailer said footfall in London decelerated in the second quarter, which Burberry said was in part due to the disruption from the Olympics impacting both tourist and domestic customers.

Across both retail and wholesale menswear was the fastest growing product division, up 12%, and now accounts for 25% of retail/wholesale revenue.

Chief executive Angela Ahrendts said: “In retail/wholesale, which accounts for over 90% of our business, Burberry delivered 7% revenue growth, 11% profit growth and a further improvement in operating margin, all in a challenging external environment. Our five key strategies remain highly relevant and we continue to invest in our retail, digital and technology growth initiatives.”

“One consistent brand expression, leveraged across all categories, will underpin future growth in the beauty division and our existing core business.”

Burberry will directly operate fragrance and beauty from April 1, 2013, following the end of its existing licence relationship with Interparfums SA.