Burberry: sanctioned for profit warning
(CercleFinance.com) - Burberry shares plunged 15% after announcing the immediate departure of its CEO Jonathan Akeroyd and his replacement by Joshua Schulman, former CEO of US fashion brands Michael Kors and Coach, in a profit warning.
In Q1 (ended 29 June), the British luxury house's retail sales fell 22% to £458m (-20% at constant exchange rates and -21% LFL).
This slowdown continued in July. If this trend were to continue in the current quarter, the operating loss for H1 and the operating profit for the year would be worse than current consensus, it warned.
As we move through this period, we have decided to suspend dividend payments for FY 2024-25 in order to maintain a strong balance sheet and our ability to invest in Burberry's long-term growth, the group continues.
Copyright (c) 2024 CercleFinance.com. All rights reserved.
In Q1 (ended 29 June), the British luxury house's retail sales fell 22% to £458m (-20% at constant exchange rates and -21% LFL).
This slowdown continued in July. If this trend were to continue in the current quarter, the operating loss for H1 and the operating profit for the year would be worse than current consensus, it warned.
As we move through this period, we have decided to suspend dividend payments for FY 2024-25 in order to maintain a strong balance sheet and our ability to invest in Burberry's long-term growth, the group continues.
Copyright (c) 2024 CercleFinance.com. All rights reserved.