Source: The Wall Street Journal Asia                             Date: 18 November, 2010

Luxury clothing retailer Burberry PLC said its first-half net profit jumped 46% from the year earlier, boosted by its pricing strategy. The fashion company, famous for its red, black and camel-colored plaid, said net profit rose 46%, to USD133.3 million, from a year earlier. Sales increased 18% and reiterated its full-year sales forecast.

London-based Burberry resisted the widespread discounting seen across much of the retail sector last year and instead kept core items like rainwear and cashmere scarves at full price. The pricing strategy has been the lynchpin in Burberry's successful return to profit and sales growth. Burberry said its profit margins widened 6.7 percentage points, ahead of the forecast it provided in October for a four percentage-point improvement.