LONDON — Profits at Burberry Group plc dipped 4.9 percent last year as a result of costs related to the brand’s technology overhaul, Project Atlas.
Profits for the fiscal year ended March 31 fell to 106.4 million pounds, or $190.1 million, from 111.9 million pounds, or $206.6 million. Currency conversions were made at average exchange rates for the respective periods.
Before the Atlas-related costs, operating profits rose 2.7 percent to 165.6 million pounds, or $295.8 million, from 161.3 million pounds, or $297.8 million.
Turnover rose 3.8 percent to 742.9 million pounds, or $1.33 billion, from 715.5 million pounds, or $1.32 billion. The turnover figure, which had been released last month, has been slightly adjusted to reflect a change in the company’s foreign currency translation method. From now on, the company will convert financial results every 30 days, based upon average exchange rates for each month.
“In a year of transition and investment, the group achieved solid financial results,” said chief executive Rose Marie Bravo in a statement Thursday. “With a strong spring season underway, we enter our 150th year with confidence in Burberry’s future.”
For complete coverage, see tomorrow’s WWD.