Burberry issues sales warning as luxury demand wanes

16th November 2023

Burberry warned it is unlikely to hit its ‘low double-digit’ sales growth guidance for the year as it is hit by a global slowdown in luxury spending.

The retailer said weakened demand was having an impact on current trading and warned that profits for the year would hit “the lower end” of the current consensus range of £552m to £668m.

In its first half to 30 Sepember, sales edged up 4% to £1.396bn while operating profit fell by 6% to £223m.

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Burberry chief executive Jonathan Akeroyd admitted the “macroeconomic environment has become more challenging recently” as Burberry joined a host of global luxury brands reporting slumps in sales.

The luxury brand posted a sharp slowdown in like-for-like store sales growth in its second quarter to 1%, down from 18% in the first, as growth in China dissipated.

Burberry said spending by Chinese luxury consumers had shifted overseas from mainland China.

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Fashion Luxury goods

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Fashion Luxury goods

16th November 2023

Georgia Wright

Burberry warned it is unlikely to hit its ‘low double-digit’ sales growth guidance for the year as it is hit by a global slowdown in luxury spending.

The retailer said weakened demand was having an impact on current trading and warned that profits for the year would hit “the lower end” of the current consensus range of £552m to £668m.

In its first half to 30 Sepember, sales edged up 4% to £1.396bn while operating profit fell by 6% to £223m.

Subscribe to Retail Gazette for free

The luxury brand posted a sharp slowdown in like-for-like store sales growth in its second quarter to 1%, down from 18% in the first, as growth in China dissipated.

Burberry said spending by Chinese luxury consumers had shifted overseas from mainland China.

Click here to sign up to Retail Gazette‘s free daily email newsletter

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