Burberry has announced a programme to make at least £100m cost savings by 2019 as underlying profit for the year ended March 31 fell 10%.
Adjusted profit before tax fell £25m to £421m on sales of £2.5bn, down 1% on an underlying basis. The luxury brand said it made savings of over £25m against its plan during the year and it will focus on ways to reduce complexity and simplify processes going forward after a slowdown in growth in markets like the US and Hong Kong.
Chief creative and chief executive Christopher Bailey said he expects the challenging environment for the luxury sector to continue in the near term.
“We continue to see significant opportunities ahead of us and have put ambitious plans in place to increase future revenue, enhance productivity and create a more efficient organisation,” he said.
The firm also announced that Philip Bowman will step down as chair of the audit committee on August 1 2016 and will be succeeded by Jeremy Darroch. Bowman will remain a member of the audit committee.
Ian Carter will also step down as chair of the remuneration committee on the same date and will be succeeded by Fabiola Arredondo. Carter will also remain a member of the remuneration committee.