British fashion house Burberry on Wednesday said future performance depended on the extent of economic recovery in China, a key market that has been hit by renewed Covid lockdowns.

Alongside news that its net profit and revenue had risen in the year to the end of March, Burberry added that it was managing fallout from the highest inflation in decades.

"Our outlook is dependent on the impact of Covid-19 and rate of recovery in consumer spending in mainland China," Burberry said in a statement.

"While the current macro-economic environment creates some near term uncertainty, we are actively managing the headwind from inflation," added the group steered by new chief executive Jonathan Akeroyd, poached from Italian rival Versace.

For the 12 months to the start of April, Burberry posted net profit of �396 million ($492 million, 468 million euros).

That was up five percent compared with its previous financial year ending in late March 2021.

Group revenue jumped 21 percent to �2.8 billion.

"Burberry is a unique British company with an extraordinary history and heritage and it is a privilege to take the reins in this next phase," said Akeroyd.

"The company has made great progress over the last five years to elevate the brand, product and customer experience into the luxury space."

Akeroyd said he looked forward to setting out his plans for future growth later in the year.

Following the results update, Burberry's share price was up 0.2 percent at �15.86 in London afternoon deals.

"Burberry's first set of results under new CEO Jonathan Akeroyd painted a promising picture of the luxury retailer," noted Laura Hoy, equity analyst at Hargreaves Lansdown.

"But the market was reluctant to cheer Burberry's results, instead focusing on the note of caution in management's guidance."

She said the fact inflation played a relatively minimal role in the cautious outlook was a welcome relief for the retail sector.

"Millionaires buying high-ticket handbags aren't as worried about rising food and fuel prices, so the brand is relatively insulated in that respect."

bcp/rfj/lth

BURBERRY GROUP

HARGREAVES LANSDOWN

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