Luxury British brand Burberry has warned that full year profits are likely to be at the lower end of market expectations after second quarter sales growth slowed.
In the 10 weeks to September 8, retail sales grew just 6% with like-for-like store sales were unchanged since last year, and new space contributing the full 6% rise in sales.
Burberry said there had been a deceleration in sales in recent weeks and it now expects to adjusted profit before tax in the year to March 31, 2013 to be at the lower end of market expectations.
Chief executive Angela Ahrendts said: “As we stated in July, the external environment is becoming more challenging. In this context, second quarter retail sales growth has slowed against historically high comparatives.
“Given this background, we are tightly managing discretionary costs and taking appropriate actions to protect short term profitability, while continuing to execute on our proven five key strategies.”
Burberry’s sales have slowed considerably since its first quarter when total revenue rose 11% to £408m, with like-for-like store sales growing by 6%.