Burberry issued profit warning stock plunged 20% luxury plate comprehensive fell

The early morning of September 12 news, British fashion and luxury goods suppliers Pakistani Burberry (Development site information) Group asked the profit warning on Tuesday, and show the slowdown of economic growth in China as well as the development of the sovereign debt crisis in Europe has led to up to three years luxury The surge in demand situation coming to an end.

Known to lined Tuomao, red and black tartan trench coat Burberry Group was the first to make a similar profit warning major luxury brand. A few months before this, investors have been widely suspected the needs of this area is beginning to show a decline. Burberry Group raised this warning the same day, the share price has plunged more than 20%, the lowest level in 11 months. Including market value, including the world's largest luxury goods maker LVMH Moet Hennessy, the main competitors in Europe and the Americas, the stock had varying degrees fell.

Supplier of luxury goods, a strong rebound from the global financial crisis in 2008 to 2009 the performance but also because of the rapid growth of China and other emerging market countries make up the market in Europe and the United States and the global economic slowdown is maintained . However, with the slowdown in world economic growth, investors began to speculate that the luxury segment performance for how long to be able to maintain a high level of performance.

Burberry Group, in a statement Tuesday that the Group name opened the store for more than a year, zero increase in sales in the 10 weeks of the end of the end of September 8. This is much lower than the 6% same-store sales growth in the quarter ended as of June 30. Burberry Group subsequently warned that the company's full-year earnings expectations may be a position in the lowest end of the range of market forecasts.

Burberry Group did not specify the the performance growth area, but some analysts still believe that all the major markets, including Asia, Europe and the United States should have varying degrees of deterioration.

Subject to the Burberry shares tumbled, led by, the main competitors in France, Louis Vuitton and PPR shares fell more than 4%, the Swiss Richemont shares fell nearly 6%. U.S. luxury goods manufacturers have also been the the European peers adverse performance drag: jeweler TIFFANY fell 1.6 percent, Ralph Lauren was down 3.7% shortly after the opening bell.

However, analysts believe that the Burberry Group profit warning does not necessarily mean that the whole industry will encounter difficulties. Hermes International last month increased its annual sales expected, the smaller Italian brand Salvatore Ferragamo is also given to the satisfaction of the market sales data.



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