Burberry shares down sharply on disappointing holiday sales
LONDON (AP) — Burberry shares are down over 6 percent in early trading after the luxury fashion house reported disappointing retail sales for the holiday season.
The company says Wednesday same-store sales for the three months ended Dec. 31 rose 2 percent from a year earlier. That “looks a bit drab” compared with the 7 percent growth reported Tuesday by rival Hugo Boss, according to London-based stockbroker Hargreaves Lansdown.
Steve Clayton, an analyst at Hargreaves Landsown, says, “today’s news has not really moved the dial. Trading is OK, but no one will be lifting their forecasts and some may make minor trims on the back of these numbers.”
Burberry says overall retail revenue fell 2 percent to 719 million pounds ($990 million) as it moves forward with a reorganization announced in November.