LONDON (AFP) – Burberry, the luxury British fashion house, announced yesterday a rise in annual net profit on lower restructuring costs – but its share price frayed on sluggish Asian sales, notably in China.
Profit after tax jumped 15.6 per cent to £339.3 million in the 12 months to the end of March, the company known for its trademark check pattern said in an earnings statement. Total revenues dipped to £2.72 billion compared with Burberry’s 2017/18 financial year.
Chief Executive Marco Gobbetti said the latest results showed the group had made “excellent progress in the first year” of a transformation plan.
But sales in key market China delivered only low single-digit percentage growth.
Burberry’s share price was down almost four per cent at £18.45 in London morning trades, topping the fallers board on the capital’s benchmark FTSE 100 index, which was down slightly.
“Today’s full-year results from the luxury goods group were seen as disappointing with weaker sales growth, especially in its key growth markets,” noted analyst Ian Forrest at trading firm The Share Centre.