Shares in the luxury brand plunged by 11% as it announced it has replaced its chief executive and suspended its dividend after warning that annual profits will fall short of expectations.
The company, which is best known for its trenchcoats, said Joshua Schulman, the former boss of US brand Michael Kors, will take over as chief executive.
Schulman replaces Jonathan Akeroyd, who is leaving Burberry “with immediate effect by mutual agreement with the board”, the company said.
The announcement came as Burberry released a trading update for the three months to the end of June, warning that the market was “proving more challenging than expected”.
The fashion brand said it was suspending its dividend, given it was on course to post an operating loss for the first half of its financial year.
Read more: LIVE: FTSE 100 and European markets down as Burberry reports profit hit
The luxury retailer revealed a 21% slump in comparable store sales in its first quarter trading update, leaving revenues down 22% to £458m ($594.9m).
Richard Hunter, head of markets at Interactive Investor, said: “If the current levels of trading persist, the group could slip to an operating loss in the first half of the year, which will add to what has been a significantly difficult time for the company.
“The level of the group’s appeal has been thwarted by weakening consumer demand, especially in the likes of China, with sales in the Asia Pacific region declining by 23% in the first quarter. Even prior to a dip of up to 12% in the share price at the open as investors attempted to digest the news, the shares had fallen by 58% over the last year and today’s announcement will have a seismic impact on the group’s nearer term fortunes.”
The price of bitcoin has jumped in a move that some analysts have linked to the attempted assassination of Donald Trump on Saturday.
The Republican is seen as the more pro-crypto candidate, having hosted industry executives at his Florida resort Mar-a-Lago. His campaign has also accepted cryptocurrency payments, a first for a major US political party.
“I will make sure that the future of bitcoin will be made in the US and not driven overseas,” Trump said during an event in Washington DC last month. “I will support the right to self-custody.”
The former president is committed to speaking at the Bitcoin 2024 conference in Nashville, Tennessee, on 27 July.
Trump, who was injured during a shooting at a Pennsylvania rally on Saturday, saw his chances of winning November’s presidential election jump around 10-points to 70% on the Polymarket platform that allows users to bet cryptocurrency on the outcome of almost anything.
Read more: Crypto live prices
Rania Gule, market analyst at XS.com, said: “I believe that US political news is driving gains in cryptocurrencies because it is a “speculation-driven” area.
“If re-elected, Trump may seek less stringent regulatory policies towards cryptocurrencies, potentially improving regulatory conditions and encouraging more investments.
“His policies towards international relations and foreign trade also have a significant impact on the market, as tensions or stability in international relations may lead to fluctuations in cryptocurrency markets.”
Shares in Trump Media skyrocketed by almost 70% in pre-market trading as traders ramped up bets on Donald Trump winning the US presidential race after the attempt on his life at the weekend.
Markets appear to be speculating that the assassination attempt makes a Trump victory in the November presidential election more likely, and that that would benefit TMTG, despite its financial struggles so far.
Charu Chanana, market strategist at Saxo Capital Markets, said: “With markets pricing in a greater possibility of Trump 2.0, the US dollar will likely get some tailwinds while the Mexican peso and Chinese yuan could suffer. Trump trades could be back in focus.”
Read more: Stocks that are trending today
Markets expect a Trump presidency to mean looser fiscal policy and higher tariffs on overseas goods.
Mark McCormick, global head of foreign-exchange and emerging-market strategy at Toronto Dominion Bank, commented: “For us, the news does reinforce that Trump’s the frontrunner,” said. “We remain US dollar bulls for the second half and early 2025.”
Trump Media & Technology Group describes its mission as ending Big Tech’s assault on free speech by opening up the internet and giving people their voices back.
Robert Walters (RWA.L)
Recruiter Robert Walters has warned that it does not expect the jobs market to pick up until next year, after a slowdown in hiring across the world.
The recruitment consultancy said it cut its headcount by 5% during its second quarter, with its number of staff falling to 3,625, down 15% on the same time last year.
Net fee income slumped 12% to £84.8m on a constant currency basis during the three months to the end of June, while gross profit fell 14% to £166.1m.
Global recruiters have been struggling to find momentum as clients delay hiring and candidates are reluctant to change jobs in the current uncertain economic climate, with elections in some countries further weighing on the market.
Read more: Stocks to watch this week: Anglo American, Burberry, TSMC and Netflix
“Our near-term planning now assumes that any material improvement in confidence levels will be gradual, and likely not occur before 2025,” CEO Toby Fowlston said.
“Though current market conditions suggest a wider range of potential outcomes for the full-year than seen historically, I have high confidence in our experienced leadership team, which has successfully navigated many challenging market cycles,” he added.
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