LONDON (AP) — British luxury brand Burberry said Tuesday that rapidly improving business in developing markets was offset by the end of a perfume licensing deal, dragging net profit down 3 percent for the year.
Shares in Burberry Group PLC closed up 3 percent at 15 pounds after the company reported an 8 percent rise in revenue to 2 billion pounds ($3 billion) and said it was pivoting toward emerging markets in Asia and Latin America.
The company, best known for its luxury trench coats, said its China sales growth hit 20 percent and that it has also signed new franchise deals in Colombia, Chile, and Barbados.
Burberry's profits have been hit by the end of its licensing deal with French perfume company Interparfums SA. Burberry said terminating the deal cost it nearly 83 million pounds over the past year.
The company is instead investing in its own line of fragrance and beauty products, hiring a number of executives in a bid to strengthen its brand in the market.