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.
Related
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
