Burberry Issues Second Profit Warning Amid Luxury Market Slowdown

CEO Jonathan Akeroyd remains confident in strategy despite a 7% drop in retail revenue and a sharp fall in share price.

Burberry has issued a second profit warning in three months, anticipating adjusted operating profit for the financial year ending March 30 to be around £410 million to £460 million, below previous guidance.
The luxury brand's retail revenue fell 7% in the 13 weeks to Dec. 30, with comparable store sales down by 15% in America and 5% in Europe and the Middle East.
Despite the downturn, Burberry CEO Jonathan Akeroyd remains confident in the company's strategy to achieve its £4 billion revenue goal in the medium term.
Other luxury brands, including LVMH and Richemont, have also reported a slowdown in demand for high-end goods, indicating a broader trend in the luxury market.
Burberry's shares fell sharply following the announcement, with a drop of 14% in early trading, before settling around 9.5% lower.