Burberry's share price drops 10% as luxury brand warns about trading over crucial Christmas period
ABC News
Burberry, the London-based luxury goods fashion house, lost around 10% of its market value on Friday after it warned that profits this year would be lower than anticipated
LONDON -- Burberry, the London-based luxury goods fashion house, lost around 10% of its market value on Friday after it warned that profits this year would be lower than anticipated as wealthy shoppers, particularly in the Americas, tightened their belts during the crucial Christmas trading period.
In a statement, the company said its recent trading had been hit by a continued “slowdown in luxury demand” after rises in the cost of living and interest rates around the world.
“We experienced a further deceleration in our key December trading period and we now expect our full year results to be below our previous guidance,” said Jonathan Akeroyd, the company's chief executive.
The company said retail revenues for the three months to Dec. 30 slid by 7% to 706 million pounds ($900 million), and that its like-for-like sales, which strips out new additions or closures, declined by 4% over the same period.
It warned that it expects unfavorable currency exchange rates to knock revenues by 120 million pounds and profits by around 60 million.
