British luxury brand Burberry on Tuesday warned that full-year profit would be at the lower end of market forecasts after store sales slowed in recent weeks.
"As we stated in July, the external environment is becoming more challenging," Chief Executive Angela Ahrendts said in a statement. "In this context, second quarter retail sales growth has slowed against historically high comparatives."
The maker of raincoats in distinctive camel, red and black check pattern said second quarter retail sales were up 6 percent in the 10 weeks to Sept 8, entirely underpinned by new space, with comparable store sales unchanged year-on-year.
Burberry, founded in 1856, is expected to post a pretax profit for the year to March 2013 of between 407 and 451 million pounds ($652-$722 million), with a consensus of 433.21 million, according to a Reuters poll of 18 analysts.
In July Burberry reported a slowdown in first-quarter sales in China, a market which has been one of the main drivers of a boom in luxury brands, with consumers eager to buy designer labels, including Burberry's raincoats and other high-end fashions. [ID:nL6E8I99IW}
Shares in the group closed at 1,375 pence on Monday, valuing the firm at around 6 billion pounds.
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