Burberry Outlet announce low profit expectations soon after flat sales
Angela Ahrendts, Burberry's chief executive, stated likeforlike sales these at stores open for a year or even more were unchanged inside the 10 weeks to September 8 just after a sharp drop off lately.
The only development came from new shops and space, which contributed 6 per cent to retail sales growth at continuous exchange prices.
Ms Ahrendts said: "As we stated in July, the external environment is becoming extra challenging. Given this background, we're tightly managing discretionary fees and taking proper actions to defend short term profitability, though continuing to execute on our confirmed five important approaches."
Burberry now expects adjusted profit before tax for the financial year to become "around the reduced end of market expectations" along with the chief executive is planning to meet investors to explain the "deceleration" in sales.
In July, Stacey Cartwright, the Burberry finance director, mentioned: "We've noticed a slowdown in present providing in China. That is modest leather goods, cashmere scarves, but also trench coats. In China there is a political change later this year and we think some consumers are nervous about spending ahead of that adjust."
The company's fairly cautious comments alarmed the industry and Burberry shares to a year low of 11.58. The shares have given that risen 19 per cent, closing at 13.75 on Monday.