Burberry revenues and profits fall

Burberry's revenues and reported pre-tax profits fell in the year to the end of March as it continued to take strategic actions to elevate its retail and digital business, particularly in wholesale and beauty.

Revenue totalled £2.8bn, down 2% underlying, but up 10% at reported FX.

The group said retail growth was offset by declines in wholesale and licensing, in part reflecting actions to elevate the brand.

Adjusted profit before tax £462m, down 21% underlying, up 10% at reported FX.

It said lower wholesale income, particularly in the US and beauty, and reduced licensing income, principally due to the planned expiry of Japanese licence, was partially offset by cost savings.

Reported profit before tax £395m (2016: £416m) after adjusting items.

Other highlights:

- Adjusted diluted EPS rose 11% to 77.4p (2016: 69.9p), with 25.8% effective tax rate (2016: 24.7%) and repurchase of 6.7m shares.

- Reported diluted EPS down 6%

- Full year dividend per share up 5% to 38.9p (2016: 37.0p), in line with progressive dividend policy

Chief creative and chief executive Christopher Bailey said: "2017 was a year of transition for Burberry in a fast changing luxury market.

"The actions we have taken to lay the foundations for future growth are yielding early benefits and I remain confident that these will build over time.

"Marco Gobbetti assumes the role of CEO from July.

"With his extensive experience in the sector, we will build on these foundations to elevate and strengthen the brand further and take Burberry to the next level as a global luxury retail and digital business.

"I am excited to work closely with him in this next chapter."