By BLOOMBERG

PARIS • Burberry Group plc CEO Marco Gobbetti (picture) is seeking to enlist investor support for his turnaround plan with a £150 million (RM805.46 million) share buyback.

The trench-coat maker yesterday reported full-year sales that trailed luxury rivals benefitting from a boom in Chinese spending. The London-based company is looking to join its peers by seeking a more exclusive image under new creative director Riccardo Tisci, who is set to show his first collection in September.

The shares rose as much as 2.3% yesterday after Burberry said it saw signs that the new strategy was paying off. A US$2,000 (RM7,936) “Belt” handbag introduced last month is selling well globally, it said, boosting Gobbetti’s hopes of building the brand’s accessories business. Burberry closed 34 retail stores during the year, while opening 14 new ones in better sites.

“Our focus is on getting the right brand positioning,” CFO Julie Brown said on a call. “It’s about getting Burberry in the right locations next to top luxury players.”

Luxury-goods makers LVMH and Kering SA both grew by double-digit percentages at the start of the year, boosted by demand from China, but the rising tide hasn’t lifted all boats. Burberry, along with brands like Salvatore Ferragamo and Tod’s, is still struggling to catch the wave.

Burberry’s sales rose 3% in the year ended March 31, it said yesterday. The company said performance was in line with guidance for the current fiscal year, and it said it was on track to deliver cost savings