Profits at luxury group Burberry fell 12.5 per cent in its full year to March 31.
Adjusted pre-tax profits were £175m compared to 200m the year before despite total revenue growth of 21 per cent to pass the £1bn mark for the first time to £1.2bn.
Its retail sales grew 14 per cent for the year contributing over half of Burberry’s total revenue for the first time. Like-for-like sales were just ahead for the year at 1 per cent.
After restructuring costs and impairment charges Burberry made an adjusted loss of £6m.
Burberry chief executive officer Angela Ahrendts said it had been one of the most difficult years ever faced by the luxury sector.
“We took rapid action to mitigate the impact of the economic slowdown, aggressively reducing inventory, executing a £50m global cost efficiency programme, resulting in a strong financial position and operating profit in line with guidance,” said Ahrendts “Entering the new year, we believe Burberry is best positioned to capitalise on opportunities which will deliver sustainable long-term growth.”
Burberry said it plans to open between 10 and 15 mainline stores in 2009/2010.