Burberry Faces Profit Decline Amidst Global Luxury Spending Slowdown

Annual profits fell by a third, driven by weakened demand in China and the US, as the company navigates a challenging market environment.

Burberry's annual profits fell by 34% due to decreased demand in key markets like China and the US.
The company saw a 12% drop in fourth-quarter sales, with a significant 19% decline in China.
CEO Jonathan Akeroyd highlighted progress in brand refocusing but acknowledged the challenges posed by a slowing luxury market.
Burberry's outerwear and scarves performed well, but ready-to-wear fashion sales declined.
The brand anticipates a tough first half of the year, with wholesale revenue expected to fall by 25%.