Burberry profits rise as it announces £150m share buyback

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Burberry store closures
// Burberry pre-tax profits rise 7% to £441m in 52 weeks to March
// Burberry said it would launch a share buyback of £150m in 2020

Burberry has posted an increase in full-year profits as well as announcing a share buyback scheme thanks to the “strong progress” in its transformation plan.

The British luxury fashion label saw a seven per cent rise in pre-tax profit to £441 million on a reported currency basis for the 52 weeks to March 30.

Operating profit increased at the same rate to £437 million, while comparable store sales went up two per cent globally.

Meanwhile, revenues and retail sales remained flat at £2.7 billion and £2.19 billion respectively.

Burberry said it would launch a share buyback of £150 million in 2020.

“We made excellent progress in the first year of our plan to transform Burberry, while at the same time delivering financial performance in line with expectations,” the retailer said.

Burberry added that the launch of fashion designer Riccardo Tisci’s first collections at the end of February saw strong double-digit percentage growth year on year.

“We confirm our financial guidance for broadly stable revenue and adjusted operating margin at CER in FY 2020 including cumulative cost savings of £120 million,” the firm stated.

“We are raising our cumulative cost saving guidance to £135 million by FY 2022.”

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