Burberry's profit hit by perfume deal's demise

British luxury brand Burberry says that the end of a perfume licensing deal depressed its bottom line, dragging net profit down 3 percent for the year ending on March 31.

But shares in the Burberry Group PLC rose just over 1 percent to 14.83 pounds Tuesday after the company reported an 8 percent rise in revenue to 2 billion pounds ($3 billion) and said it was pivoting toward emerging markets in Asia and Latin America.

The company says its China sales growth hit 20 percent and says it has signed new franchise deals in Colombia, Chile, and Barbados.

Burberry's profits have been hit by the end of its licensing deal with French perfume Interparfums SA, which the company says has cost nearly 83 million pounds over the past year.