Fashion retailer Burberry has said adjusted full-year pre-tax profits crashed 10% to £421 million as the company flagged a challenging trading environment for its luxury products.
Revenue fell 1% to £2.5 billion at the group, which is famous for its trench coats and check scarves.
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, underpinned by strong brand and business fundamentals."
Mr Bailey, who is also chief creative officer, said the group would slash £100 million in costs to help offset difficult trading.
Last month Burberry said that fourth-quarter sales had been hit lower spending by Chinese tourists in continental Europe and a collapse in the Hong Kong luxury market.
The retailer makes around a third of its sales from the Asia Pacific region and has been hit hard as Chinese consumers have reined in their spending, particularly in Hong Kong, traditionally a prime shopping destination for Chinese consumers.
Mr Bailey added: "We continue to see significant opportunities ahead of us and have put ambitious plans in place to increase future revenue, enhance productivity and create a more efficient organisation."
The company also warned that full-year profits in 2017 would be "towards the bottom of the range of analysts' expectations".