Fashion house Burberry PLC (LON:BRBY) reported lower annual profits, sales and revenue but said it was returning £150mln to investors in a share buyback.
Burberry said adjusted underlying pre-tax profit fell £35mln to £421mln, down 10%, while like-for-like sales dropped 1%, alhough they were up 3% excluding Hong Kong and Macau.
Revenue in the year to the end of March was also down 1% to £2.5bn and reported pre-tax profit declined to £416mln from £445mln a year ago.
The group said it expected tough trading in the luxury market to continue in the near term and vowed to cut at least £100mln in costs by 2018/19.
The chain said last month that sales to travelling luxury customers in continental Europe had slowed and it reported "uneven" domestic demand in the US.
But it hiked its full-year dividend by 5% to 37p and said its annual dividend in 2016/17 would at least match that in 2015/16.
It said it would start a share buyback of up to £150mln starting in 2016/17.
Chief executive Christopher Bailey said: "While we expect the challenging environment for the luxury sector to continue in the near term, we are firmly committed to making the changes needed to drive Burberry's future outperformance.
"The capital allocation framework announced today prioritises the investment needs of the business and regular dividend payments to our shareholders, while balancing capital efficiency and flexibility."