Burberry lowers full-year guidance amid luxury demand slowdown
The British retailer now expects adjusted operating profit for the financial year ending 30 March 2024 to be in the range of £410m to £460m, compared to the previous expectations of between £552m to £668m
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Fashion retailer Burberry has today (12 January) warned that its full-year results will be below its previous guidance after a slowdown in luxury demand.
In the 13 weeks to December 30, retail revenue fell 7% to £706m. Comparable store sales fell 4%, with sales in the EMEIA and Americas regions falling 5% and 15% respectively. Asia Pacific sales instead increased 3%.
According to the new updated guidance, Burberry now expects adjusted operating profit for the financial year ending 30 March 2024 to be in the range of £410m to £460m, compared to the previous expectations of between £552m to £668m.
In addition, the retailer expects currency headwind of £120m to revenue and £60m to adjusted operating profit.
Jonathan Akeroyd, chief executive officer, said: “We are continuing to deliver the transition to our new modern British luxury creative expression for Burberry which started appearing in our stores in early Autumn. We are still in the early stages of executing on this, which has become more challenging against the backdrop of slowing luxury demand.
“We experienced a further deceleration in our key December trading period and we now expect our full year results to be below our previous guidance. We remain confident in our strategy to realise Burberry’s potential and we are committed to achieving our £4bn revenue ambition.”
