Burberry issues profit warning as luxury sales slow
Its adjusted operating profits fell by 6% to £223m which it attributed to increased investment in stores alongside an increase in costs linked with inflation
Burberry has revealed its annual adjusted operating profits would be towards the lower end of its current consensus range of £552m-£668m following a slowdown in demand for luxury goods.
This comes despite a 4% increase in revenues to £1.396bn during the 26 weeks ended 30 September 2023. Q2 comparable store sales increased 1%, with EMEIA +10%, Asia Pacific +2%, Americas -10%.
However, its adjusted operating profits fell by 6% to £223m which it attributed to increased investment in stores alongside an increase in costs linked with inflation.
Burberry said it is confident in its strategy and remains committed to achieving its medium and long-term targets yet the slowdown in luxury demand globally is having an impact on current trading.
CEO Jonathan Ackroyd said: “We made good progress against our strategic goals, executing our priorities at pace. We continued to build momentum around our new creative vision with the launch of our Winter 23 collection in September, the first designed by Daniel Lee.
“While the macroeconomic environment has become more challenging recently, we are confident in our strategy to realise our potential as the modern British luxury brand, and we remain committed to achieving our medium and long-term targets.”
