Burberry sees full-year profit at lower end of forecasts as retails sales slow

LONDON – Luxury goods maker Burberry PLC says that full-year pretax profit will be at the lower end of market expectations following a flat retail performance in the last 10 weeks.

Burberry said Tuesday that retail sales in the period ending Sept. 8 were 6 per cent higher than a year ago, but all of the growth was due to new stores. Comparing stores open for at least a year, retail sales were unchanged and the company noted “a deceleration in recent weeks.”

Retail accounted for about two-thirds of the company’s sales in the year ending March 31.

Chief Executive Angela Ahrendts says “the external environment is becoming more challenging,” and she says the company is keeping a close eye on discretionary costs.