Burberry Group PLC (LSE:BRBY) expects full-year results to be below expectations amid “challenging” trading conditions and a “backdrop of slowing luxury demand”.
Chief executive officer Jonathan Akeroyd said: “We experienced a further deceleration in our key December trading period and we now expect our full year results to be below our previous guidance.”
The luxury goods retailer now expects adjusted operating profit for the financial year to 30 March 2024 to be in the range of £410 million to £460 million. In November, Burberry said operating profit would be closer to the bottom of the then consensus range of £552 million to £668 million.
The firm said retail revenue in the 13 weeks to 30 December 2023 fell 7% to £706 million from £756 million with like-for-like store sales down 4%.
Sales in the Americas tumbled 15%, EMEA sales fell 4% but Asia Pacific saw a 3% increase.
Burberry expects a currency headwind of around £120 million to revenue and £60 million to adjusted operating profit.
Akeroyd said he remains “confident in our strategy to realise Burberry's potential and we are committed to achieving our £4 billion revenue ambition".