LONDON: Britain’s Burberry said it was being hit by a global slowdown in luxury spending, and if it continued it was unlikely to meet its revenue forecast of low double-digit growth for its current financial year, with a knock-on impact on profit.
The company, known for its trench coats, on Thursday reported a sharp slowdown in comparable store sales growth in the three months to end-September to 1%, down from 18% in the previous quarter, resulting in a worse-than-expected 10% for the half.
Rising inflation and economic uncertainty have curbed shoppers’ appetite for luxury after years of blockbuster demand, prompting investors to trim forecasts.
LVMH, the world’s biggest luxury group with brands including Louis Vuitton, Dior, and Tiffany, reported a slowdown in quarterly sales in October, as did Kering with its Yves Saint Laurent, Balenciaga and Bottega Veneta brands.