British luxury fashion house Burberry reported an 18 percent decline in net profit to USD 196 million for the first half ending September, citing weakened global demand for high-end clothing, particularly in China’s slowing economy.
In an official statement, Burberry acknowledged the impact of the global luxury demand slowdown on current trading and expressed concerns about achieving previously stated revenue guidance for the full year if the weaker demand persists.
It said, “If the weaker demand continues, we are unlikely to achieve our previously stated revenue guidance” for the group’s full year.
In response to the announcement, Burberry’s share price experienced a 10.6 percent decline to £15.61 in early trading, marking it as the most significant faller on London’s FTSE 100 index, which was down 0.1 percent overall.
Highlighting the crucial role of Chinese consumers in the luxury sector, Huggins noted that China’s struggling economy contributes to the challenges faced by luxury brands.
