Benzinga - by Lekha Gupta, Benzinga Editor.
Burberry Group PLC (OTC:BURBY) registered a retail revenue of £706 million, a decline of 7% Y/Y on a reported basis and 2% Y/Y on constant currencies in 13 weeks, ending on Dec. 30, 2023.
Comparable store sales declined 4% Y/Y, and contribution from space rose 2% Y/Y in nine months ended-FY23.
By region, comparable store sales rose 3% Y/Y in Asia Pacific, while it declined 5% Y/Y in EMEIA and 15% Y/Y in Americas in Q3 FY24.
In Asia Pacific, Mainland China rose 8% Y/Y, South Asia Pacific was up 2% Y/Y, and Japan increased 9% Y/Y, while South Korea witnessed a decline of 10% Y/Y.
Burberry’s shares were down 7% in morning trading, extending losses over the last year to 44% and other luxury stocks like Lvmh Moet Hennessy Louis Vuitton SE (OTC:LVMHF) and Kering SA (OTC:PPRUY) both declined 2% in reaction to this, as per Reuters.
Outlook: Burberry noted a slowdown in luxury goods demand, thus lowering the expectations of adjusted operating profit for FY24 to £410 million to £460 million, from $552 million-$668 million earlier.
The London-based company remains committed to achieving a revenue of £4 billion. In particular, the company projects wholesale revenue to decline by a high-single-digit percentage in fiscal 2024.
Burberry now expects a currency headwind of c.£120 million to revenue and c.£60 million to adjusted operating profit.
Also, Burberry expects capex to be around £200 million in FY23 and has completed a share buyback worth £400 million as of Oct. 31, 2023.
Price Action: BURBY shares closed lower by 2.29% to $17.50 on Thursday.
Now Read: Producer Price Index Slows More Than Expected To 1% In December, Signals Softening Price Pressures
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.