British fashion house Burberry is likely to miss its annual revenue forecast for FY24 as global luxury demand weakens, the company said in its latest report.
Comparable store sales for the second quarter were up 1 per cent, a sharp drop compared to the 18 per cent increase in the first quarter. The modest growth was influenced by the 10 per cent drop in sales in the Americas. Meanwhile, comparable store sales in Asia Pacific increased 2 per cent during the quarter.
“The slowdown in luxury demand globally is having an impact on current trading,” the company said.
Burberry’s shares fell almost 10 per cent in early trading. It reported US$1.7 billion in revenue for six months ended September 30. The company said adjusted operating profit would be towards the lower end of the forecasts from $685 to $829 million.
“While the macroeconomic environment has become more challenging recently,” said Jonathan Akeroyd, CEO at Burberry. “We are confident in our strategy to realise our potential as the modern British luxury brand, and we remain committed to achieving our medium and long-term targets.”
The company rolled out its immersive experiences ‘Burberry Streets’ in London, Seoul and Shanghai last month. The Winter 23 collection, the first designed by Daniel Lee, arrived in stores in September.
