Burberry, the heritage brand, will end its clothing licence with Sanyo Shokai and Mitsui & Co in Japan five years earlier than originally planned.
The licence agreement will expire in June 2015 and not 2020 as previously arranged.
Burberry said that in the year to March 31 2010 it would receive higher royalty payments than thought, which will increase operating profit by about £4m.
Burberry added that it had enhanced its performance criteria, based on higher levels of production from January 1 2011.
Burberry chief executive Angela Ahrendts said: “Japan is a strategically important market for Burberry, where we continue to review all opportunities available to us. This amendment to the licence agreement will add to our profitability in the near term.
“Together with the luxury non-apparel joint venture announced last November, the amendment also better positions Burberry in the next few years to optimise its presence in Japan and the high growth Asian region.”