View all newsletters
Have the short, sharp Spear's newsletter delivered to your inbox each week
  1. Wealth
September 12, 2012

FT: Burberry decline suggests China slowdown speeding up

By Spear's

The unexpected update stoked concerns that a slowdown in China and the turmoil in the eurozone were finally taking their toll on luxury groups, which have proved remarkably resilient in the face of the global economic downturn

The unexpected update stoked concerns that a slowdown in China and the turmoil in the eurozone were finally taking their toll on luxury groups, which have proved remarkably resilient in the face of the global economic downturn.

The British luxury brand said profits this year would be below some analysts’ expectations due to slower sales growth, sending its shares down 21 per cent – its steepest one-day decline since its market debut a decade ago.

“We know we are not alone,” said Stacey Cartwright, Burberry’s finance director, adding that she believed some of the other long-established “heritage” brands were also suffering.

The comments were taken as an ominous sign for the sector, and sent shares in other luxury goods groups tumbling in Europe and the US.

“It is unlikely to be a single brand issue,” said James Lawson, a director of Ledbury Research, which specialises in the luxury sector.

To read the full story, visit ft.com

Read more from Wealth Wednesday

Content from our partners
Why a patient-first approach is key in healthcare
Abu Dhabi: How the 'capital of capital' became a magnet for UHNWs
Abu Dhabi Finance Week in the 'Capital of Capital'

Select and enter your email address The short, sharp email newsletter from Spear’s
  • Business owner/co-owner
  • CEO
  • COO
  • CFO
  • CTO
  • Chairperson
  • Non-Exec Director
  • Other C-Suite
  • Managing Director
  • President/Partner
  • Senior Executive/SVP or Corporate VP or equivalent
  • Director or equivalent
  • Group or Senior Manager
  • Head of Department/Function
  • Manager
  • Non-manager
  • Retired
  • Other
Visit our privacy policy for more information about our services, how Progressive Media Investments may use, process and share your personal data, including information on your rights in respect of your personal data and how you can unsubscribe from future marketing communications.
Thank you

Thanks for subscribing.

Websites in our network