Burberry lowered is profit guidance for the year after sales dropped 7% over the golden quarter.
The retailer lowered its adjusted operating profit guidance for the year ended 30 March 2024 to be in the range of £410m to £460m, dramatically behind the £552m to £668m original forecast.
While revenues were up 3% in the Asia Pacific for the third quarter to December 30, it dropped 5% across Europe, the Middle East and Africa and plunged 15% across the Americas.
Burberry said it also expected a currency headwind of aroudn £120m to sales and £60m to adjusted operating profit.
Despite the result, the business said it remained confident in its strategy to realise Burberry’s potential as the modern British luxury brand and was committed to achieving its £4bn sales goal.
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Burberry CEO Jonathan Akeroyd said: “We are continuing to deliver the transition to our new modern British luxury creative expression for Burberry which started appearing in our stores in early autumn.
“We are still in the early stages of executing on this, which has become more challenging against the backdrop of slowing luxury demand.”
He continued: “We remain confident in our strategy to realise Burberry’s potential and we are committed to achieving our £4 billion revenue ambition.”
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