Battered Luxury Stocks Face Fresh Setback From Burberry Warning
- Burberry shares sink most in a decade after profit warning
- Peers such as LVMH and Kering also slide as outlook stays weak
Items on display in a Burberry Group Plc store on Bond Street in London.
Photographer: Jason Alden/BloombergThis article is for subscribers only.
Luxury stocks are off to a rough start this year, adding to their 2023 woes, with Burberry Group Plc’s surprise profit warning crushing hopes for a near-term rebound.
Burberry slumped as much as 15% on Friday, the biggest one-day decline in more than a decade, after slashing its profit forecast due to a slowdown during the key Christmas quarter. While the stock pared losses to trade 7.4% lower as of 10:25 a.m. in London, the move triggered a selloff in peers LVMH, Kering SA and Richemont SA, wiping out as much as $7 billion from the sector.