Burberry Shares Face The Most Serious Slide

Last year, the long Hongkong protests led to a setback in many luxury retailing businesses, and Burberry was one of them.

At the same time, the weakness of the euro has led to the proliferation of "gray market" pactions.

They will go to Europe to buy luxury goods at low prices and return to China for the two sale.

In addition, the Chinese government's suppression of vanity consumption is also an important reason for the decline in the performance of luxury brands.

London's early trading, BRBY shares: -5.37%, BURBY shares: +0.02%, plunged 4.2%, the largest decline since October 15, 2013.

At that time, Burberry announced that CEO Angela Ahrendts, which had pformed the brand to sexy and modern fashion, has switched to Apple, and its chief designer, Chris Bailey, will replace it.

At that time, retailers generally believed that this kind of creative and core management of the two functions merged into one position is quite bold.

Judging from Wednesday's share changes, Bailey's performance in the company's performance for one year has not been satisfied with market satisfaction.

Although this year's earnings are in line with expectations, investors are concerned about other parts of the result.

Mike van Dulken, head of research at Accendo Markets, called it an "unexpected early warning."

Keith Bowman, a financial analyst, said: "the expected earnings of the new financial year at the top of the company are disappointing and are expected to be affected by exchange rate resistance.

There is also an early warning of future prospects, emphasizing that uncertainty in some markets will increase. "

"Japan's licence expiry also has an impact on this.

China in the second half of fiscal year

The slowdown in demand for Burberry products is also expected to result in a slight decline in 2016's annual performance.

Keith Bowman added.

By the end of March, the net profit in the last fiscal year was 336 million 300 thousand, compared with 322 million 500 thousand pounds in the same period last year, but the adjusted pre tax profit was reduced from 462 million pounds last year to 455 million 800 thousand pounds. The annual revenue increased from 2 billion 520 million pounds last year to 2 billion 520 million pounds, an increase of 8%.

At the same time, the company said that the impact of exchange rate changes will continue to the new fiscal year, and accordingly issued a financial warning. Burberry estimated that its wholesale and retail profits in fiscal year 2016 would be about 40 million pounds, lower than expected.

The news has disappointed investors, causing the company's worst share price slide in a year and a half.

The company's adjusted pre tax earnings decline was attributed to the change in the pound's exchange rate and the slowdown in sales in Hongkong.

In addition, sales of its iconic windbreaker and other products in China last year were not optimistic.

Burberry has updated its market performance in the second half of April.

The turnover in the US and Europe, the Middle East, India and Africa all showed a two digit increase, which helped to balance the decline of the brand in the Asia Pacific region.

Burberry CEO Christopher Bailey said: "in today's challenging external environment, our global sales team will pay more attention to our core business, including brand proud British original product development, and expansion of online and offline product integration.

"In the early part of this year, we found that instability is growing in some markets.

Against this background, we will continue to make use of our existing channels, geographical and product advantages to flexibly manage our business and create long-term value for our shareholders.

Burberry has raised its annual dividend from 10% to 35.5% per share. "