Burberry's profits plummeted earlier this year as Chinese consumers left the luxury retail industry.
The fashion brand's pre-tax profits fell by 40% last year to £383m ($483m) for the year ended March 30, with underlying profits also down 34%.
Operating profit for the year to the end of March fell 36% to £418m.
Underlying sales fell 12% in the final quarter, with turnover down 4% to £2.9bn.
Sales in the company's key Asia-Pacific region fell 17% in the fourth quarter, and the number of customers in China fell 12% compared to the same period last year.
Burberry has warned that it expects wholesale revenue to fall by around 25% in the first half of this year.
It also said exchange rate fluctuations were expected to result in currency headwinds of around £30 million to sales and around £20 million to profits next year.
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Chief Executive Officer Jonathan Aykroyd said that although results were lower than initially expected, the company's refocus on its brand was on track.
“Burberry is one of the brands affected by the economic slowdown seen across the luxury goods industry,” said Third Bridge analyst Yangmei Tan. High-end customers will become more selective about what they buy.
“Our experts say Burberry has struggled to clearly define and enhance its brand identity, resulting in confusing messages and slowing sales growth. It relies too much on new creative directions rather than additions.”
Imperial Brand (IMB.L)
Tobacco company Imperial Brands reiterated its full-year outlook despite lower interim profits and sales.
Sales of Imperial's NGP brands, which include heated tobacco cigarettes Pals and e-cigarettes Blue, increased by 16.8%. The company also increased its interim dividend by 4% to 44.90 pence.
For the six months to 31 March, reported sales fell 2.3% to £15.1bn and operating profit fell 2.6% to £1.5bn.
The group said cigarette prices rose by 8.6%, more than making up for the decline in volume.
Next Generation Products (NGP), including e-cigarettes and Heat Not Burn, saw sales increase by 16.8%, driven by strong growth in Europe, Africa and Asia Pacific. Sales volumes in the US decreased by 10.3%.
CEO Stefan Bomhardt said: “The tobacco pricing in the first half and the strong momentum in NGP give us confidence that we can deliver full-year results in line with our guidance.”
Boeing (BA)
Boeing shares fell in pre-market trading following reports that the company may face prosecution in the United States over the 737 MAX jet crash that killed 346 people.
The U.S. Department of Justice (DOJ) had accused the plane maker of violating its obligations in a 2021 agreement that shielded Boeing from criminal prosecution over the crashes.
One crash in Indonesia in 2018 and another in Ethiopia in 2019 killed a total of 346 people.
U.S. officials said in a letter that Boeing had “failed to design, implement, and enforce a compliance and ethics program to prevent and detect violations of U.S. fraud laws throughout its business activities.” It said it had breached its obligations under the Agreement (DFA).
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According to the Justice Department, prosecutors plan to inform the court of how to proceed by July 7 at the latest.
Boeing has been under intense scrutiny over the safety of its aircraft since an unused door came loose from the new 737 Max shortly after takeoff in January, leaving a gaping hole in the side of the plane.
Oracle (ORCL)
Oracle stock rose before the market opened on news that the company is nearing a $10 billion cloud deal with Elon Musk's artificial intelligence startup xAI.
The deal, first reported by The Information, revolves around leasing cloud servers from Oracle, making xAI one of Oracle's largest customers and a key competitor in the AI industry alongside OpenAI and Google. It becomes.
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Last September, Oracle Chairman Larry Ellison announced that the company had won a contract to provide cloud infrastructure to xAI for training artificial intelligence models. At the time, Ellison did not disclose the amount or length of the contract.
However, latest reports suggest that the deal is expected to last five years and be worth $10 billion.
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