Burberry reports drop in sales and profits
Luxury fashion brand Burberry has seen its full year revenue decline by 1% to £2.5 billion on an underlying basis with like-for-like sales falling by the same percentage.
In the year to 31 March, adjusted profit before tax was down 10% on an underlying basis to £420.6 million. Reported pre-tax profit dropped by 7% to £415.6 million.
Burberry said its performance reflected a difficult period for the luxury sector with demand slowing in many of its markets, particularly in Asia.
Due to the external environment remaining “challenging” and underlying cost inflation pressures persisting, Burberry said it had been accelerating its productivity and efficiency agenda. It has also been addressing how to optimise future organic revenue growth opportunities, the resulting investment plans and its capital structure.
Christopher Bailey, Burberry chief creative and chief executive officer, said: "While we expect the challenging environment for the luxury sector to continue in the near term, we are firmly committed to making the changes needed to drive Burberry's future outperformance, underpinned by strong brand and business fundamentals.
“We continue to see significant opportunities ahead of us and have put ambitious plans in place to increase future revenue, enhance productivity and create a more efficient organisation. In addition, the capital allocation framework announced today prioritises the investment needs of the business and regular dividend payments to our shareholders, while balancing capital efficiency and flexibility."
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