Global growth lifts Burberry first-half profit by 41%.

The UK luxury brand said net profit climbed to $185.6 million for the six months to September 30, with revenue rising 29% to $1.3 billion.

The company reported 45% underlying growth in retail sales, which now account for 64% of revenue, up from 57% last year. Comparable-store sales rose 16%, thanks to new products, better replenishment, global buying, and sales and service initiatives.

Burberry is investing to build its growth in under-penetrated markets, with North American wholesale revenues up 25% on an underlying basis. This was driven by a strong performance in department stores, where it opened some 16 concessions over the period.

Emerging markets have also increased their share of revenues, accounting for 19% of sales, up from 13% in the first half of the previous year.

“Burberry has delivered a strong first half, reflecting our continued investment in innovative design, digital marketing and retail strategies,” said CEO Angela Ahrendts.

“This consistent performance, balanced across channels, regions and product divisions, is enabled by our closely connected global teams and creative thinking culture.

“As we begin to see initial returns from five years of infrastructure investments, we are confident that this solid foundation will enable us to optimize both our strong brand momentum and the luxury sector’s opportunities, especially in high-growth flagship and emerging markets.”

Luxury goods firms have represented a rare and surprising success story in a year dogged by euro-zone weakness, says Jon Copestake, retail industry analyst at the Economist Intelligence Unit (EIU).

“Burberry is joined by exclusive brand stables like PPR and LVMH in performing strongly,” he notes. “Aggressive expansion in emerging markets, particularly China and India has paid off handsomely.

“Overall annual retail sales in China grew 17.2% in October and the EIU is forecasting a five-fold increase in the number of households earning over US$50,000 between 2010 and 2015.

“That said, fears over a Chinese slowdown hit confidence in Burberry hard earlier this year, and over-reliance here could leave them exposed if spending eases.”