Burberry announces share buyback as turnaround programme starts to take shape
Source - SMW
UK fashion brand Burberry announced a share buyback after reporting a rise in pre-tax profits as its transformation programme started to take shape.
The company said it would launch a share buyback of £150m in 2020.
For the 52 weeks to 30 March, pre-tax profits rose 7% to £441 and revenues was flat at £2.7bn.
Comparable store sales were up 2% globally and retail sales were flat at £2.19bn.
'We made excellent progress in the first year of our plan to transform Burberry, while at the same time delivering financial performance in line with expectations,' the company said.
The company also touted optimism following the launch of Riccardo Tisci's first collections, which arrived in stores at the end of February, and saw strong double-digit percentage growth year on year.
'Riccardo's product only arrived in stores in the final weeks of the year, representing around 10-15% of the total assortment in March and we stepped up the rationalisation of our US non-luxury wholesale doors in the second half.'
The full year dividend per share was up 3% to 42.5p.
'We confirm our financial guidance for broadly stable revenue and adjusted operating margin at CER in FY 2020 including cumulative cost savings of £120m. We are raising our cumulative cost saving guidance to £135m by FY 2022,' the company said.
'As planned, we anticipate a more pronounced weighting of operating profit in H2 2020 relative to H1 than in the prior year. This results in a decline in H1 2020 at CER largely due to the strong comparator in the prior year. We expect growth to be re-established in H2 as Riccardo's collections build through the year.'