British luxury fashion group Burberry said it would overhaul its retail operations and simplify its product range after its full-year profit fell 10 per cent. It said it expected the market to remain challenging this year meaning profit is likely to come in towards the bottom of market forecasts, and more weighted to the second half than last year. The group, famous for its trench coats, has been hit by a slowdown in Chinese tourists visiting its stores in Europe, and weak demand in Hong Kong.

Burberry reported adjusted pretax profit of £421 million pounds for the year to end-March, broadly in line with analysts’ forecasts.

Reuters