Luxury fashion brand Burberry has announced that it will be streamlining its product ranges and overhauling its retail operations after disappointing full-year results.
Pre-tax profits fell to £415.6 million in the year to 31 March, from £444.6 million the previous year.
Revenues fell 1% on an underlying basis to £2.5 billion and the firm said that profits for this year are likely to be at the end of expectations.
The group said that it plans to make annual savings of at least £100million by 2019 by overhauling its retail operations by reducing operating expenses and improving its marketing. The cost-saving plan will also see Burberry cut down on duplications across the business and push online expansion.
Christopher Bailey, chief creative and chief executive, commented: “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.”
