Luxury fashion group Burberry announced a fall in annual net profit, triggering a three-year program of cost savings totaling at least 100 million (HK$1.13 billion).
Profit after tax dropped 8 percent to 309.5 million in its financial year that ended March 31, as the group was hit by weak performances in Hong Kong and Macau. That compared to net profit of around 336 million in 2014-15.
The company said revenues fell 1 percent to 2.5 billion in the past financial year.
Burberry, which last month warned that its new financial year would see profits at the bottom end of expectations, added yesterday that it had "identified a program of actions to deliver at least 100 million .. cost savings" by 2019.
"Broadly half is expected to come from significant changes in our ways of working, by reducing complexity, simplifying processes and eliminating duplication," it said.
Group chief executive Christopher Bailey said while it expects "the challenging environment for the luxury sector to continue in the near term," the company is "firmly committed to making the changes needed to drive" Burberry forward.
"Trading conditions in Hong Kong have taken their toll on Burberry, and the company is responding to challenging conditions by cutting its cloth accordingly," said Steve Clayton, research head at stockbrokers Hargreaves Lansdown. AGENCE FRANCE-PRESSE
