The British brand, known for its trenchcoats and check print, is trying to tackle weak trading in areas such as Hong Kong and inflation in its costs.
Burberry said it planned to cut down on duplication across its global operations and plough investment into its biggest growth opportunities, including expanding online.
It said the £100m of annualised cost savings were expected to come from reducing operating expenses and improving efficiency in areas such as marketing.
The company has been under pressure from some investors to strengthen its leadership after recent disappointing trading put the spotlight on Mr Bailey’s joint role of chief creative officer and chief executive.
Mr Bailey, who as in previous years did not front the media presentation on Wednesday, said in the results statement: “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.”
He said the group had put “ambitious” plans in place to increase future revenue, enhance productivity and create a more efficient organisation.
Central to those plans was reducing the number of product lines Burberry sold. The company hopes this will help improve the way it runs its stores and encourage a bigger proportion of the 40m people who follow the brand on social media to buy its products.
“Retail excellence has become a bit of a buzzword recently,” Mr Bailey told analysts. “For us it is really meaningful.”