Burberry cuts profit guidance after slowdown in luxury demand
Burberry has warned that its full year results will be below its previous guidance after retail revenue fell by 7% to £706 million in the run-up to Christmas.
In the 13 weeks to 30 December, comparable store sales were down 4% after falling by 5% and 15% respectively in its EMEA and Americas regions. However, sales in the Asia Pacific region rose by 3%.
Burberry said a slowdown in luxury demand is having an impact on current trading. This means it now expects adjusted operating profit for the year to 30 March 2024 to come in at between £410 million and £460 million, compared to the previous guidance of £552 million to £668 million.
Jonathan Akeroyd, chief executive of Burberry said: “We are continuing to deliver the transition to our new modern British luxury creative expression for Burberry which started appearing in our stores in early autumn. We are still in the early stages of executing on this, which has become more challenging against the backdrop of slowing luxury demand.
“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. We remain confident in our strategy to realise Burberry’s potential and we are committed to achieving our £4 billion revenue ambition.”