Burberry profits fall 10% to £421m as tough market hampers performance
Adjusted full-year pre-tax profits at fashion retailer Burberry have crashed 10% to £421m amid challenging trading conditions for its luxury profits.
Revenue also declined by 1% to £2.5bn at the group, which is best known for its trench coats and check scarves.
Chief executive Christopher Bailey 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."
Mr Bailey, who is also chief creative officer, said the company would slash £100m in costs to help offset difficult trading.
Last month, Burberry said that fourth quarter sales had been hit by lower spending by Chinese tourists in continental Europe and a collapse in the Hong Kong luxury market.
The retailer makes around a third of its sales in the Asia Pacific region and has been hit hard as Chinese consumers have reined in their spending, particularly in Hong Kong, traditionally a prime shopping destination for Chinese consumers.
Mr Bailey added in a statement: "We continue to see significant opportunities ahead of us and have put ambitious plans in place to increase future revenue, enhance productivity and to create a more efficient organisation."