British luxury fashion house Burberry expects operating profit for FY24 upto March to be in the range of £410 million to £460 million as against an earlier forecast of £552 million to £668 million. The brand is being hurt by a slump in luxury demand triggered by the deflation of a boom in high-end spending that peaked during the pandemic.

Sales of the fashion house to the end of December declined by 7 per cent to £706 million, compared with £756 million for the same period in 2022.

The end-of-year slowdown has hit Burberry’s US retail sales hard, with store sales declining by15 per cent in its third quarter compared with the same period the previous year, with store sales in Europe, the Middle East, India and Africa falling 5 per cent.

Along with Burberry, other industry players including Richemont and LVMH have also being hit by a slowdown in luxury spending.