Burberry announced this morning that it is undertaking a £100m share buyback programme, which will be conducted by Morgan Stanley.
The buyback will start today and end on 18 April 2017 at the latest, Burberry said. Burberry's share price edged up 0.31 per cent on the news.
The luxury fashion retailer announced last week that its like-for-like sales in the first quarter of the financial year had fallen by three per cent. Chief executive Christopher Bailey said the company was having difficulties in "a challenging external environment".
Burberry has been struggling with a fall in Chinese visitors to Hong Kong, where the group delivered a double-digit percentage decline in sales.
The share buyback comes after a management reshuffle at Burberry; the group appointed Marco Gobbetti as chief executive last week, who joined from Celine. Burberry's share price jumped after it announced Christopher Bailey would become president at some point in 2017.
Burberry's shares have been benefiting post-referendum after analysts predicted that the brand – which targets the travelling Chinese and other high-end shoppers – could be advantaged by the fall in sterling.
Burberry's Brexit boost came despite the fact that the company sent a letter to its workers warning of the negative impact of a vote to leave the EU.