Profits at Burberry have fallen by 40% year-on-year, reaching £383m in the year to 30 March.
The luxury fashion brand also saw its group revenue drop by 4% to almost £3bn, while its gross profit fell by 8% to just over £2bn in the same period.
Burberry suggested that a slowing luxury market was the cause of these reductions in financial figures.
The group issued a warning to investors in January, predicting operating profits would fall between £410m-£460m, and blaming the cost of living crisis and rising interest rates.
In the year to 30 March, adjusted profits fell in this region, reaching £418m, a drop of 36% year-on-year.
Furthermore, the group saw declines in its comparable store sales in the Asia Pacific and Americas regions. Despite sales increasing by 3% across the year in the Asia Pacific region, sales dropped by 17% in the final quarter. The Americas also saw respective drops of 12% in comparable store sales in Q4 and the full financial year.
However, Burberry said it has seen double-digit growth in elite customer numbers and spend in the 2024 financial year, and has also strengthened its distribution network.
Chief executive officer at Burberry, Jonathan Akeroyd, said: "Executing our plan against a backdrop of slowing luxury demand has been challenging. While our FY24 financial results underperformed our original expectations, we have made good progress refocusing our brand image, evolving our product and strengthening distribution while delivering operational improvements.
"We are using what we have learned over the past year to finetune our approach, while adapting to the external environment. We remain confident in our strategy to realise Burberry's potential as the Modern British Luxury brand and in our ability to successfully navigate this period."
Looking forward, Burberry said it expects the first half of the 2025 financial year to "remain challenging", adding that it expects to see improvement in the second half.
Wholesale revenue is estimated to fall by a quarter (25%) in the first half, as it increases its control on distribution, and hopes to implement changes after identifying cost savings that will offset the impact of inflation.
It added that it expects a currency headwind of £30m in revenue and £30m in adjusted operating profit in the 2025 financial year.
Investment director at AJ Bell, Russ Mould, said: "Burberry’s share price has more than halved over the past 12 months and the stock now trades as low as the price reached when markets tanked as the COVID-19 pandemic brought the world to a grinding halt. If ever there was a chance for another luxury goods firm or private equity to pounce on Burberry while it is on its knees, it’s now. It is a screaming takeover target for someone who is able to look beyond current problems and recognise the true value of the brand over the long-term.
"The UK has developed a reputation for being a pool of sitting ducks, waiting to be devoured by a predator as valuations are cheap or shares are unloved. One by one companies are being picked off and a bout of share price weakness is one of the classic scenarios whereby you can expect a takeover approach. For Burberry, it feels like the odds of a takeover are shortening by the day."
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