Luxury group Burberry reports 2% annual sales growth but sees shares drop 6.84% on weak European demand.
Burberry posted a 2% rise in comparable full-year sales, driven by 10% growth in the Americas and China in the quarter ended March. The company called the results a “meaningful inflection point” in its turnaround efforts, citing momentum in key markets and a return to profitable growth.
However, European sales lagged due to reduced tourist flows linked to Middle East conflict, offsetting gains elsewhere. Analysts noted three consecutive quarters of improvement, with Burberry refocusing on its heritage products and increasing marketing spend.
Despite the positive print, Burberry shares fell 6.84% in London trading, reflecting investor concerns over the uneven regional performance and broader macroeconomic uncertainty.