Burberry's share price drops 10% as luxury brand warns about trading over crucial Christmas period

Burberry, the London-based luxury goods fashion house, lost around 10% of its market value on Friday after it warned that profits this year would be lower than anticipated. It said wealthy shoppers, particularly in the Americas, tightened their belts during the crucial Christmas trading period. The company said its recent trading had been hit by a continued “slowdown in luxury demand” after rises in the cost of living and interest rates around the world. Burberry’s profit warning was its second in three months. In November, it warned that its sales growth was lagging behind targets due to pressure in the luxury market.