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Demand for luxury goods slows as profits for Burberry slump by 40%.

Fashion & StyleDemand for luxury goods slows as profits for Burberry slump by 40%.

Sales of luxury goods have fallen in Asia and the Americas due to a wider slowdown in demand. The pre-tax profit at the high-end UK fashion retailer fell by 40% in the year up to 30 March due to a decline in global sales. The company said it expects a challenging first half of next year, with the promise of disciplined cost control. The company issued a profit warning in January and said that the cost of living crisis and higher interest rates would lead to a decline in operating profits. The company's share price fell by 3% in early trading before recovering to 1.5% down. The sales for the year were down by 1% compared with the previous 12 months but the second half of the year was more sluggish than the first. Sales in the Americas fell in the second half of the year, and across the whole year. In the second half of the year, sales in Asia and the Pacific plummeted by 7%, compared with the previous year. Mulberry reported a 4% decline in sales last week and blamed a slowdown in luxury spending in the UK and Asia. Kering issued a profit warning in March after it reported that demand for its flagship brand, Gucci, had dried up in China. The analyst at Third Bridge said thatBurberry is one of the brands that have been affected by the slowdown in the luxury industry. Our Privacy Policy and Terms of Service can be found here. Newsletter promotion.

Executing our plan against a backdrop of slowing luxury demand has been challenging. While our full-year financial results did not meet our expectations, we have made progress refocusing our brand image, evolving our product and strengthening distribution. We are confident in our ability to navigate this period and realize the potential of the brand.

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