From Morningstar:

Luxury group Burberry issues another profit warning, shaking stock market with significant profit downgrade. Adjusted operating profit expected to be between £410-460 million for the year ending March 30. Previously, profits forecasted to be between £552-668 million but plummeted to £634 million in Nov 23. Shares fell by nearly 8% to £12.57 on Friday approaching a 44% decline since 2023.

Morningstar luxury analyst Jelena Sokolova flags the profit downgrade as a significant event and cut the fair value estimate has been cut from £24.60 to £21. She emphasizes that the slowdown in luxury spending is mainly driven by developed markets. This, however, could be specifically a Burberry issue and not industry-wide, she says. By midmorning, the company’s shares were down nearly 8% to £12.57, and they’re off around 44% since the same period of 2023.

For the year ending March 30, Burberry’s adjusted operating profit fell significantly to £410-460 million from £552-668m forecasted in November. Previous financial year profits sat at £634 million. Analyst says a slowdown in sales is mainly due to unwinding pandemic-time savings by Americans and Europeans. Sales in Mainland China were up 8% with Korean sales weakening to being down 10% from the previous year.



Read more: Burberry Shares Slide on New Profit Warning