Burberry profits rise as transformation plan bears fruit

The luxury fashion business recorded a 7% climb in pre-tax profit to £441m on a reported currency basis during in the year to March 30.

Operating profit advanced at the same rate to £437m.

Burberry said total revenues were flat year on year at £2.7bn, but adjusted operating margin slipped from 17.1% to 16.1%.

The group said it made cost savings of £41m during the year, ahead of its original plan. It now aims to make cumulative cost savings of £135m by the end of its 2021/22 financial year.

Burberry said performance was also buoyed by the launch of a new creative vision, the building of “brand heat” on social media and press coverage, and the “excellent” wholesaling of its new collections.

It said Riccardo Tisci’s first collections registered “strong double-digit” growth year on year.

Burberry boss Marco Gobbetti said: “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.

“Riccardo Tisci’s first collections arrived in stores at the end of February and the initial reaction from customers is very encouraging. The implementation of our plan is on track, we are energised by the early results and we confirm our outlook for financial year 2020.”