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Luxury Retail Nightmare: Burberry Announces Cost-Cutting Program After Profit Slump

Luxury Retail Nightmare: Burberry Announces Cost-Cutting Program After Profit Slump

Burberry announced it will cut costs and buy back shares after reporting an 8% plunge in full-year profits.

The high-end British retailer says it aims to save at least $144.7M a year by 2019 and will buy back up to $217M in shares starting in 2017, the Wall Street Journal reports. That will be the firm’s first buyback in years, and it’s a move long desired by investors.

The retailer has been losing the battle in key markets in the US, as well as in Hong Kong, and it isn’t alone—this year has been a rough one for retailers. As part of its plan to spice up its offerings, Burberry will relaunch its website and unveil a mobile app that lets customers checkout on the go. [WSJ]