Burberry Shares Plunge Amid Global Luxury Retail Slowdown

Company warns of potential failure to meet annual revenue growth target as sales growth slows to 1% in fiscal second quarter.

Burberry shares fell 10% after the company reported slowing sales growth and declining profit due to weakened global demand for luxury goods.
The company's comparable store sales grew only 1% year-over-year during its fiscal second quarter, down from 18% the prior quarter.
Burberry's operating profit fell 15% during the six months ended September 30 from the same period last year to 223 million British pounds ($277 million).
The company warned that it might not meet its full-year revenue growth target for fiscal 2024, and that adjusted operating profit would be at the “lower end” of the consensus range due to the widespread slowdown in luxury demand.
Other luxury brands such as LVMH and Kering are also experiencing a slowdown in sales.