London, Jan 12 (AP) Burberry, the London-based luxury goods fashion house, lost around 10 per cent of its market value on Friday after it warned that profits this year would be lower than anticipated as wealthy shoppers, particularly in the Americas, tightened their belts during the crucial Christmas trading period.

In a statement, 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.

Also Read | UK: Female Prison Officer Caught Engaging in Sexual Activities With Inmate on Secret Camera in Store Cupboard at HMP Birmingham, Jailed.

“We experienced a further deceleration in our key December trading period and we now expect our full year results to be below our previous guidance,” said Jonathan Akeroyd, the company's chief executive.

The company said retail revenues for the three months to December 30 slid by 7 per cent to 706 million Pounds (USD 900 million), and that its like-for-like sales, which strips out new additions or closures, declined by 4 per cent over the same period.

Also Read | Russia Says Defense Industry Worker Arrested for Providing Information to Poland About Moscow's Production.

It warned that it expects unfavourable currency exchange rates to knock revenues by 120 million Pounds and profits by around 60 million.

Following its statement, the company's share price slid as much as 14 per cent in early trading before settling around 9.5 per cent lower.

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.

Other luxury brands, including Switzerland's Richemont and France's LVMH, have also warned of waning demand for their goods.

“The cracks appearing in luxury demand are very telling,” said Sophie Lund-Yates, an analyst at stockbrokers Hargreaves Lansdown. “So-called aspirational shoppers are one of the demographics pulling back, and Burberry is more exposed to this type of customer than super-high-end luxury.” (AP)

(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)