British luxury brand Burberry said the impact of foreign exchange rates would fade after weighing on profit and sales in the first half of its financial year.

The fashion company, which has launched a high-profile Christmas campaign featuring 12-year-old Romeo Beckham, son of soccer star David and designer Victoria, said trading remained tough, "with pockets of weakness in Europe".

Burberry reported a 12 per cent drop in profit before tax for the six months to September 30th to £142 million, which was broadly in line with market forecasts.

Foreign exchange rates shaved off £75 million in revenue and £31 million in profit in the company’s fiscal first half but should become less of a factor in the months to come, the company said.

– (Reuters)