Burberry hit by slowdown in luxury spending

BRITAIN’S Burberry said it was being hit by a global slowdown in luxury spending, and if it continues, it was unlikely to meet its revenue forecast of low double-digit growth for its current financial year, with a knock-on impact on profit.

The company, known for its trench coats, on Thursday (Nov 16) reported a sharp slowdown in comparable store sales growth in the three months to end-September to 1 per cent, down from 18 per cent in the previous quarter, resulting in a worse-than-expected 10 per cent for the half.

Rising inflation and economic uncertainty have curbed shoppers’ appetite for luxury after years of blockbuster demand, prompting investors to trim forecasts.

LVMH, the world’s biggest luxury group with brands including Louis Vuitton, Dior, and Tiffany, reported a slowdown in quarterly sales in October, as did Kering with its Yves Saint Laurent, Balenciaga and Bottega Veneta brands.

Cartier owner Richemont has also predicted an easing in growth. REUTERS