Burberry warns on profits
Luxury-goods company Burberry said it expects adjusted profit before tax in the current fiscal year to be at the lower end of market expectations.
Adjusted pre-tax profit in the year through March will be at the lower end of analyst estimates, which range from £407 million (€509.5 million) to £454 million, the London-based company said today.
"The external environment is becoming more challenging," chief executive officer Angela Ahrendts said in a statement.
Sales at stores open at least a year were unchanged in the 10 weeks ended September 8, with a "deceleration in recent weeks."
The surprise warning deals a second blow to Burberry investors in the space of two months.
In July, the company reported a slowdown in sales growth as revenue from its licensing business fell, trailing analysts' estimates for a second straight quarter.
Retail sales, excluding currency shifts, rose 6 per cent in the 10 weeks ended September 8, compared with growth of 14 per cent in the first quarter, the company said today.
"Given this background, we are tightly managing discretionary costs and taking appropriate actions to protect short-term profitability," Ms Ahrendts said in the statement.