Burberry has announced a reduction in its annual profit forecast – Kommersant

British luxury goods manufacturer Burberry Group PLC reports about reducing its forecast for financial indicators in 2023. As follows from the company’s document, it now expects operating profit to range from £410 million ($523 million) to £460 million. The company cited the general market situation, where demand for luxury goods is declining, as the reason for the revision of the forecast. Burberry particularly noted the decline in demand even during its key Christmas period.

Today’s warning from the company is the third since the beginning of the year. In November, Burberry had already revised its full-year forecast downwards, reporting that operating profit for the year would be between £552 and £668.

The company’s shares fell 7% after her announcement. Since January last year, the price decline has been 44%. Shares of the company’s main competitors, LVMH and Kering, fell 2%. These companies have not said they would cut their own profit forecasts, but have repeatedly reported an overall decline in demand for luxury goods in key markets over the past year.

Andrey Kelekeev