international newport fashion group madrid, designers warning Profit warnings also hit fashion retailers
Profit warnings have made to the news since the very beginning of the year, and the fashion and luxury industries have been no exception to this trend. French Connection, Esprit, Burberry, Mulberry… all of them have seen their business and stocks tumbling after issuing profit warnings in the past months.
2012 will be recorded as the worst year for UK-listed companies since the height of the financial crisis, as, according to data compiled by the quarterly Ernst & Young report on profit warning, there were 287 profit warnings in 2012.
Ernst & Young's latest quarterly profit warnings report counted 86 issued in the last three months of last year. More than 15 percent of UK quoted companies issued warnings in 2012, only slightly down on 2008, the worst year on record, when there were close to 18 per cent. Burberry and Mulberry featured among the top-profile London-listed companies that have issued profit warnings during the last year, being it two times for Mulberry.
Last to issue a profit warning in London was ailing French Connection. Earlier in January and in an unscheduled update, the owner of FCUK brand said Christmas sales were hit by lower demand and a delay in discounting, upping their estimated full year loss to 7.5m-8 million pounds, far above the 6 million consensus forecast from...