Burberry’s full-year adjusted operating profit was up 5% year on year to £467m, as revenue remained largely flat at the luxury fashion house.
Reported operating profit was up 4% to £410m for the year to 31 March after adjusted operating items of £57m principally relating to restructuring costs. Adjusted operating margin also improved to 17.1%, up from 16.6%.
Revenue for the year dropped 1% to £2.7bn. Revenue excluding beauty wholesale improved by 2% year on year to £2.6bn.
Like-for-like store sales increased by 3% on 2017.
In November the group set out its turnaround strategy. It said it has made “good initial progress and the plan is on track”.
During the year Burberry appointed Riccardo Tisci as chief creative officer; acquired its Italian leather goods partner; launched a collaboration with Farfetch; began closing stores as planned; and completed the transfer of its beauty business to US cosmetics giant Coty.
Burberry said trading in the current financial year was in line with guidance. It added that £100m cost savings would be made and a new share buyback of £150m was being launched.
Marco Gobbetti, chief executive, said: “In a year of transition, we are pleased with our performance as we began to execute our strategy. While the task of transforming Burberry is still before us, the first steps we implemented to re-energise our brand are showing promising early signs. With Riccardo Tisci now on board and a strong leadership team in place, we are excited about the year ahead and remain fully focused on our strategy to deliver long-term sustainable value.”