Burberry has seen its operating profit plunge 36% to £418m as it grapples with a challenging economic environment amid its strategic repositioning efforts.
The luxury fashion retailer said its like-for-like sales fell 12% in the final quarter, wiping out gains made earlier in the year. While revenue was also down by 4% to £2.9bn.
Chief executive Jonathan Akeroyd said: “Executing our plan against a backdrop of slowing luxury demand has been challenging.”
Sales in Asia grew by just 3% over the course of the year, slowed down by a 17% drop in the fourth quarter.
Looking ahead, the business said it expects the first half of the year to “remain challenging”.
Wholesale revenue is estimated to drop by about 25% in the first half as it increases control of distribution.
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CEO Jonathan Akeroyd said: “While our FY24 financial results underperformed our original expectations, we have made good progress refocusing our brand image, evolving our product and strengthening distribution while delivering operational improvements.
“We are using what we have learned over the past year to finetune our approach, while adapting to the external environment.
“We remain confident in our strategy to realise Burberry’s potential as the Modern British Luxury brand and in our ability to successfully navigate this period.”
Back in January, the retailer slashed its profit guidance for the year amid a slowdown in luxury spending.
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