Burberry profits inch higher

Burberry Brings London To Shanghai- Inside

Net profit rose 2.4 percent to £294 million ($397 million, 336 million euros) in the year to March 31 compared with 2016/17, Burberry said in a statement, as solid growth in China helped offset a sluggish performance in the UK.

The group meanwhile generated full-year revenue of £2.73 billion, down one percent year-on-year. The stock is outperforming the broader United Kingdom market, with the benchmark FTSE 100 index now standing 0.19 percent higher at 7,737.89 points.

But pre-tax profits grew 4.6pc to £413m after it closed 34 of its more than 450 shops, including some outlet stores and concessions, and found £44m in cost savings on top of £20m already slashed in its cost and efficiency programme.

Shares in Burberry (LON:BRBY) have jumped in London this morning as the blue-chip retailer announced a £150-million share buyback.

"This acquisition is a major milestone for us and a statement of our ambition in this strategically important category", says CEO Marco Gobbetti.

He has appointed Riccardo Tisci, who he worked with at Givenchy, as Burberry's chief creative officer.

Tisci started as chief creative officer March, replacing Christopher Bailey, and his first collection will be shown in September.

"With Riccardo Tisci now on board and a strong leadership team in place, we are excited about the year ahead and remain fully focused on our strategy to deliver long-term sustainable value".

The company has also recently signed an agreement to acquire a luxury leather goods business from longstanding Italian partner CF&P with the intention of creating a centre of excellence for its leather goods.

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