It now expects adjusted operating profit for the year to 30 March 2024 to be between £410m and £460m, compared to guidance issued in November of between £552m and £668m.
At constant exchange rates, the sales decline was down by 2%.
Store sales were down 4% overall, after falling by 5% and 15% respectively in its EMEA and Americas regions. However, sales in the Asia Pacific region rose by 3%. Burberry also said that based on foreign exchange rates as of 29 December, it now expects a currency headwind of around £120m to revenue and around £60m to adjusted operating profit.
The brand had experienced a “deceleration”, it said in a statement, amid a “slowdown” in the luxury market.
Jonathan Akeroyd, chief executive of Burberry said: “We are continuing to deliver the transition to our new modern British luxury creative expression for Burberry which started appearing in our stores in early autumn. We are still in the early stages of executing on this, which has become more challenging against the backdrop of slowing luxury demand.
“We experienced a further deceleration in our key December trading period and we now expect our full year results to be below our previous guidance. We remain confident in our strategy to realise Burberry’s potential and we are committed to achieving our £4 billion revenue ambition.”
