London: As demand for pricey clothing declines around the world, particularly in China’s sluggish economy, European luxury fashion house Burberry announced on Thursday that its net profit for the first half was declining.
According to a statement from the British group, profit after taxes decreased by 18 % to £158 million ($ 196 million ) in the six months leading up to the end of September.
According to Burberry, current trading is being impacted by the global decline in pleasure demand.
We are unlikely to meet our originally stated revenue guidance for the entire group’s year if the weaker demand persists.
In early deals, traders responded to the news by sending Burberry’s share price down 10.6 percent to £15.61, making it the biggest decliner on the top-tier FTSE 100 index in London, which was over 0.1 percent total.
According to Charlie Huggins, a stock portfolio manager at the investment company Wealth Club,” Burberry’s revenue growth slowed considerably in the second quarter as trading circumstances became much more challenging.”
It’s certainly a big shock, to be honest. Wealthier customers, who had splurged on luxury products in the midst of the pandemic, are now tightening their wallets, which means that the entire industry is beginning to feel the pinch.
While” Chinese consumers are essential for the pleasure field,” Huggins continued,” China’s economy is struggling.”
