Investors are jittery this morning as British luxury goods maker Burberry lowered its 2016 retail and wholesale profit guidance due to foreign exchange movements, citing that there is an increase in uncertainty across some markets, reports Reuters.
The 159 year-old fashion label said that, despite updating the market this morning with a 7% rise in underlying full year pre-tax profit, it was continuing to be hit by currency fluctuations, following the strength of the US dollar, the weakness of the euro and the surge in the Swiss franc earlier this year.
For its full-year results, Burberry said it had seen significant impact from exchange rates, reducing reported revenue by £72m pounds.
Burberry said the focus on its British-made trench coats and cashmere scarves had a been a principle driver of this year’s growth, as well as its investment in digital which outperformed across all its regions.
