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Burberry profit steady as it waits for new ranges to hit stores

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Burberry profit steady as it waits for new ranges to hit stores
FILE PHOTO: The logo of Burberry outlet store is seen in Paris, France, March 10, 2016. REUTERS/Charles Platiau   -   Copyright  Charles Platiau(Reuters)
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LONDON (Reuters) – British luxury brand Burberry reported broadly flat full-year revenue and profit on Thursday and said it expected similar this year as it sets the foundations for growth with more products by its new designer Riccardo Tisci in stores.

The company reported revenue of 2.72 billion pounds, down 1% at constant exchange rates, and adjusted operating profit of 438 million pounds, for the year ended March 30, flat on the same basis compared with the year before.

Chief Executive Marco Gobbetti said the reaction from customers to Tisci’s first collection had been “very encouraging” since it hit stores from the end of February.

“The implementation of our plan is on track, we are energised by the early results and we confirm our outlook for FY (fiscal year) 2020,” he said.

Burberry said there would be a more pronounced weighting of operating profit in the second half relative to the first this financial year.

It is rationalising its distribution in the United States to ensure the brand is in the right stores, hitting its financial results in the short term.

But it said it expected growth to be re-established in the second half as Tisci’s collections build through the year.

The company increased its full-year dividend by 3% to 42.5 pence a share and it announced a 150 million pound share buyback.

(Reporting by Paul Sandle; Editing by Alistair Smout and Mark Potter)

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