LONDON — British luxury brand Burberry Group PLC reported a sharp slowdown in U.S. sales growth as it chose to cut back supplies for department stores to sell through their discount outlets, knocking its high-flying shares.
The 156-year-old seller of raincoats and leather goods, known for its camel, red and black check pattern, said on Tuesday it wanted to focus on more profitable full-price sales and was seeing no overall moderation in demand. The group met forecasts with a 22 percent rise in third-quarter revenue. Some analysts said the figures were flattered by a pulling forward of wholesale orders and that the firm’s full-year guidance implied little growth in fourth-quarter wholesale sales.
“Nothing wrong with the overall numbers, however the poor performance in the U.S. and the weak Q4 guidance may worry the market,” Liberum analysts said in a research note.