Iconic British fashion brand Burberry, which was established in 1856 and made trench coats in WW1, has suffered a 40% profits loss for the latest year of trading, as finances are driven down by reduced sales in Asia and the Americas.

The premium UK fashion retailer posted pre-tax profit of £383m for the year to March 30 in preliminary results – a 40% drop on the £634m recorded in the previous yearly period.

Having already issued a profit warning in January which forecast operating profits of between £410m and £460m over the year as a result of the cost of living crisis and higher interest rates, adjusted operating profit came in at £418m in the results released on Wednesday. Shares took an initial consequent dip of 4% before showing some recovery.

Burberry has stores in Edinburgh, Manchester, Birmingham and London, while it operates a global network of outlets and online sales.

Jonathan Akeroyd, CEO, said: "Executing our plan against a backdrop of slowing luxury demand has been challenging. While our FY24 financial results underperformed our original expectations, we have made good progress refocusing our brand image, evolving our product and strengthening distribution while delivering operational improvements."

He added: "We are using what we have learned over the past year to finetune our approach, while adapting to the external environment. We remain confident in our strategy to realise Burberry's potential as the Modern British Luxury brand and in our ability to successfully navigate this period."

Key details for the year included a global fall in sales of 8% in the second half of the year with the year's revenue flattening at -4%. With a £400m share buyback completed in the year, the full-year dividend of 61.0p was proposed.

Looking at progress in the FY24, the brand said it had refocused storytelling around Modern British Luxury, improved brand perceptionand seen double-digit growth in elite customer numbers and spend. An "elevated aesthetic and quality of seasonal offer" had also helped to reinvigorate larger, core collections.

Burberry said it distribution network is also now stronger, with more than 50% of stores new or refurbished, while a reconfigured supply chain would sharpen the retailer's creative vision, improve product availability and bolster manufacturing capabilities.

In 2025, aims include a quest to "refine brand expression and increase product focus in storytelling," while also enhancing the retail store experience with a "focus on conversion".

Burberry added it estimated wholesale revenue to fall by around -25% in the first half of next year due to an increase in distribution control.