Burberry shares slump as luxury group cuts full-year forecasts
SHARES in Burberry slumped five per cent yesterday after the luxury goods giant cuts its full-year profit forecast, hit by foreign exchange movements and a slowdown in Hong Kong.
The FTSE 100 company said retail and wholesale profit would be £40m lower than expected in the current financial year.
The warning came as Burberry reported a one per cent decline in profit before tax for the year to 31 March, after a £38m hit from currency headwinds. Excluding the impact of currency movements, adjusted profits rose by seven per cent to £456m.
“At this early stage of the year, we are seeing increased uncertainty in some markets,” said chief executive Christopher Bailey. “
Revenue rose by 11 per cent to £2.5bn, as strong demand for heritage trench coats and investment into its digital offer helped to offset a slowdown in , Hong Kong, which has been hit by the crackdown on gifting and protests last year.