Shares in Burberry slump after firm says demands for luxury goods slowing
SHARES in Burberry fell over 7 per cent yesterday after it said profits would suffer due to a slowdown in demand for its luxury goods.
Wealthy shoppers tightening their belts in the run-up to Christmas hit the luxury London fashion house hard.
Burberry saw shares fall after an update in November.
They are now half the value they were last May.
Retail revenues for the last three months of 2023 fell 7 per cent to £706million, with like-for-like store sales down 4 per cent.
Russ Mould, investment director at AJ Bell, said: “The idea that wealthier individuals would completely brush off the cost-of-living crisis has been thrown in the bin.
“No sector is immune from such pressures and over the past six months we’ve seen cracks appearing.”
Burberry said full-year profits to March will come in at between £410million and £460million.
Boss Jonathan Akeroyd said: “We are confident in our strategy to realise Burberry’s potential.”
But he warned that unfavourable currency exchange rates could knock revenues by £120million, and profits by £60million.
Although sales in America suffered, tumbling 15 per cent, a rebound was reported in China and Japan.
Shelling out
SHELL petrol stations are the most expensive in the UK, transport charity RAC Foundation found.
The fuel cost an average of 142.6p per litre at Shell pumps on Thursday compared to the cheapest chain Morrisons’ 136.9p.
Petrol averaged 139.7p this week, the lowest level since October 2021.
House built
LOWER mortgage rates should boost demand in the housing market this year, according to affordable homes provider Vistry.
The housebuilder put up 16,124 new homes in 2023, down 5.4 per cent from the year before.
It said profits for the year will come in at around £418million.