Future Of British Business
Burberry Slumps After Profit Warning on Wilting Luxury Sales
- Luxury-goods company’s sales declined in key Christmas season
- Burberry had already warned earnings would be at low end
Burberry Group Plc slumped after the UK trenchcoat maker slashed its profit forecast, a fresh sign that demand for luxury goods, particularly in the US, is waning.
The British retailer wiped nearly £100 million ($128 million) off its profit outlook in the starkest sign yet that after an unprecedented surge in luxury sales during the pandemic, the bubble has burst. The stock fell as much as 15% in London, the steepest intraday decline in more than a decade.