Burberry Group Plc (BRBY), the U.K.’s largest luxury-goods maker, said full-year profit will disappoint after sales growth slowed globally, sending the shares down the most ever and rattling those of peers.
“We know we are not alone in terms of what we’ve seen in the last couple of weeks,” Chief Financial Officer Stacey Cartwright said today in a phone interview, citing conversations with other luxury-goods makers. “Traffic is down.”
Burberry fell as much as 20 percent, the steepest drop since the company’s 2002 initial public offering, while LVMH Moet Hennessy Louis Vuitton SA (MC), Cie. Financiere Richemont (CFR) SA and PPR SA also slumped. Profit for the year through March will be at the lower end of analyst estimates, Burberry said, dealing a second blow to investors in the space of two months. In July, the company reported slowing sales as licensing revenue slipped, trailing estimates for a second straight quarter.