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Burberry shares fell again yesterday amid uncertainty over its future ahead of a crucial update from the new boss.
Shares in the luxury brand fell 6 per cent, or 46.6 pence, to 731.4 pence, leaving them down almost 50 per cent so far this year despite a rally over the past month due to the acquisition speculation.
Italian ski jacket maker Moncler, which is backed by LVMH, is rumored to be considering a bid for the British fashion house.
Uncertainty: Burberry shares fell 6%, leaving them down almost 50% so far this year, after Italian ski jacket maker Moncler insisted it is not considering a bid.
However, Moncler has insisted this is not the case, which has reversed the rally.
The acquisition talks come as Burberry CEO Joshua Schulman, appointed in July, prepares to brief investors on his plans for the company.
Schulman, who is Burberry’s fourth chief executive in ten years and previously held the top job at Coach and Michael Kors, will outline his strategy alongside the release of half-year results tomorrow.
The luxury goods sector as a whole has been hit by high interest rates and inflation, which have hit demand, while the slowdown in China’s economy has taken a heavy toll.
Concerns that Donald Trump will start a trade war when he returns to the White House pushed European stock markets lower, with the FTSE 100 losing 1.22 per cent, or 99.42 points, to 8,025.77 and the FTSE 250 fell 1.43 percent, or 295.73 points, to 20,427.80.
European stocks have been under pressure as investors weigh the likelihood of tariff increases on exports to the United States.
Stock Watch – 4 impressions
Shares of the advertising and marketing company 4 fell as it praised “strong financial performance” but warned of “difficult market conditions.”
The company, which customizes everyday paraphernalia such as pens, mugs, umbrellas and golf balls for businesses that want branded products, said orders from new customers so far this year are down 9 percent.
But it said it was still on target for profits close to £120m. The shares fell 8.2 per cent, or 445p, to 4,995p.
There are also concerns that Trump will appoint China hawk Marco Rubio as Secretary of State, making him America’s top diplomat.
London-listed shares with exposure to China fell, with Prudential falling 5.2 per cent, or 33.4 pence, to 608 pence, while miners were also falling on concerns about the Chinese economy.
Anglo American fell 4.6 percent, or 106.5 pence, to 2,220 pence, Glencore fell 3.1 percent, or 12.05 pence, to 376.45 pence and Antofagasta fell 2.1 percent, or 34 pence, to 1,622.5 pence.
The construction company Vistry had no respite after recently admitting that profits will be much lower than expected after underestimating the development cost of certain projects.
City analysts have been reassessing the prospects of the company behind Bovis Homes, with UBS and Citigroup the latest to cut their price targets for the stock. The shares fell 5.6 per cent, or 42 pence, to 713.5 pence.
Shares in FTSE 100 wound care company Convatec, which makes everything from acute burn dressings to catheters, rose 22.1 per cent or 47.8p to 264.4p after to raise its forecasts for the year.
Also making progress in the top flight was blue-chip distribution group DCC after it announced plans to demerge.
The company is looking to sell its healthcare unit, which delivers medical products, and has launched a review of the future of its technology division. That will allow it to focus on its energy business, which is fuel distribution.
The shares rose 14.2 per cent, or 704 pence, to 5,670 pence.
Power generator Drax rose 3.8 per cent, or 24.5 pence, to 666.5 pence after it said profits for the year would be at the top end of the City’s forecasts.
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