Burberry warns on profits as global demand for luxury slows

For the 26 weeks to September 30, 2023, Burberry reported a 15% slump in reported operating profit to £223m and a 6% dip in adjusted operating profit to £223m.

Revenues for the period were up 4% to £1.3bn, driven by what the retailer called “good performance” across core outerwear and leather goods categories.

Burberry said it is “confident in our strategy and remain committed to achieving our medium and long-term targets”, but warned that it was struggling with a slowdown in consumer demand for luxury goods.

The company said it now expected a reduced currency headwind of c.£110m to sales and c.£60m to adjusted operating profit.

Chief executive officer Jonathan Akeroyd said: “We made good progress against our strategic goals, executing our priorities at pace. We continued to build momentum around our new creative vision with the launch of our Winter 23 collection in September, the first designed by Daniel Lee.

“While the macroeconomic environment has become more challenging recently, we are confident in our strategy to realise our potential as the modern British luxury brand, and we remain committed to achieving our medium and long-term targets.”