• by Sarah Mahoney  @mahoney_sarah, January 12, 2024

Burberry Group Plc had already thrown a flare that luxury demand was slowing. But the high-end British retailer says business worsened as December wore on.

It warned investors that the final month of the holiday season saw “further deceleration,” said Jonathan Akeroyd, CEO, in the company’s announcement. This is the second such warning in three months. Burberry’s stock traded as much as 17% lower on the news.

“We are continuing to deliver the transition to our new modern British luxury creative expression for Burberry, which started appearing in our stores in early autumn,” Akeroyd said. “We are still in the early stages of executing on this, which has become more challenging against the backdrop of slowing luxury demand.”

That transition includes the first collections from new designer Daniel Lee, chief creative officer, who joined Burberry in 2022. The company has also begun “pricing up,” making items in some segments more expensive at a time when even luxury consumers are thinking about their checkbooks.

Other moves last fall in what the company termed a "new era" included changed ecommerce strategies and marketing tactics aimed at invigorating the in-store experience.

Those include the debut of Burberry Streets, a series of high-visibility takeovers designed to celebrate exploration in cities worldwide, including London, Seoul, and Shanghai. The efforts use sidewalk chalk stencils of the company’s Equestrian Knight logo, Burberry-wrapped taxis and British food.

“With our redesigned website, new brand signifiers across product and branding and the launch of our global Burberry Streets initiative here in our home market, we're looking forward to sharing the new Burberry world with our clients,” wrote Rod Manley, Burberry’s CMO, when the campaign launched.

Last week, the company rolled out a collection to celebrate the Lunar New Year and the Year of the Dragon in a campaign shot in Chengdu, China, starring brand ambassadors Tang Wei and Chen Kun.

Burberry makes roughly 43% of its sales in Asia Pacific, 33% in Europe and the Middle East, and 24% in the Americas.