Shares in Burberry (LON:BRBY) have jumped in London this morning as the blue-chip retailer announced a £150-million share buyback. The move came as the company updated investors on its full-year performance, posting a rise in profits.
As of 08:17 BST, Burberry’s share price had added 1.77 percent to 1,835.50p. The stock is outperforming the broader UK market, with the benchmark FTSE 100 index currently standing 0.19 percent higher at 7,737.89 points.
Burberry updates on performance
Burberry announced in a statement this morning that its adjusted operating profit had inched two percent on a reported basis to £467 million in the 12 months ended March 31. The group meanwhile generated full-year revenue of £2.73 billion, down one percent year-on-year. Burberry, however, posted a four-percent rise in free cash flow to £484 million and hiked its dividend per share by six percent to 41.3p. The retailer further announced a new share buyback of £150 million.
Burberry also noted that its trading was in line with guidance and that it was on track to deliver cumulative cost savings of £100 million.
Retailer’s transformation continues
“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,” Burberry’s chief executive officer Marco Gobbetti commented in the statement. “With Riccardo Tisci now on board and a strong leadership team in place, we are excited about the year ahead.”
Gobbetti has been looking to move the luxury goods retailer further upmarket and earlier this year, the company appointed former Givenchy director Tisci to replace Christopher Bailey as a chief creative officer.