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British luxury fashion house Burberry has cut its full-year profit forecast following a weak Christmas trading period, sending shares in the group down more than 10 per cent on Friday.
In November, the company predicted that adjusted operating profit could be at the “lower end” of its forecast range of £552mn to £668mn.
On Friday, Burberry 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.”
It now expects adjusted operating profit for the financial year to March to be in the range of £410mn to £460mn.
Burberry is among the companies hit hard as the boom in luxury sales, which peaked during the pandemic, deflates. The industry’s biggest players, including Richemont and LVMH, have warned of either falling sales or slowing growth in recent months.
Shares in Burberry were down as much as 14 per cent in early trading on Friday.