Burberry, Oil, Vistry and DocuSign

Burberry has said the slowdown in demand for its luxury goods worsened in December as wealthy shoppers tightened their belts.

The London-based fashion house slashed its profit guidance for the year as a result.

It said trading has been affected by a continued “slowdown in luxury demand” after rises in the cost of living and increases to interest rates globally.

Jonathan Akeroyd, chief executive officer of the company, said it saw a “further deceleration in our key December trading period” which will weigh on its profitability.

Burberry had already seen its shares slump following its previous update in November, when it warned sales growth was lagging behind targets due to pressure in the luxury market.

Read more: UK economy returns to growth but spectre of recession still looms

On Friday, Burberry revealed retail revenues for the three months to December 30 slid by 7% to £706m. It said like-for-like store sales dropped by 4% over the key trading period.

Sophie Lund-Yates, lead equity analyst at Hargreaves Lansdown said the latest profit warning shows “cracks appearing in luxury demand.”

“So-called aspirational shoppers are one of the demographics pulling back, and Burberry is more exposed to this type of customer than super-high-end luxury,” she added.

Brent oil (BZ=F)

Oil prices jumped as Britain and the US launched airstrikes against Houthi rebels in Yemen in response to the attacks on ships in the Red Sea that have disrupted global trade.

Brent crude has risen in early trading to more than $79 a barrel, while US-produced West Texas Intermediate (MCL=F) has risen towards $74.

The BBC reported that the UK government is concerned that ongoing attacks on shipping in the Red Sea could cause the economy to shrink.

“The BBC understands the Treasury has modelled scenarios including crude oil prices rising by more than $10 a barrel and a 25% increase in natural gas.

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“The government fears if the disruption to cargo traffic spreads to tanker traffic then another energy shock is possible.”

Housebuilder Vistry said it expects profits to come in £8m higher than its previous forecast months after it said it would switch its entire focus onto affordable homes.

The FTSE 250 (^FTMC) housebuilder said it expects pre-tax profits to hit £418m, higher than previous guidance of £410m.

The group also reduced its dept levels to £90m, from the June position of £328.7m.

It sold 16,124 homes during the year, which was down 5.4% but ahead of competitors.

Chief executive Greg Fitzgerald said: “Looking ahead, working with our highly valued partners we are committed to increasing the delivery of much needed homes across the country, and in the fourth quarter have continued to secure exciting new developments that reflect our high return, asset-light partnerships model.

Read more: LIVE: FTSE and European markets higher as UK economy grows

“Our forward sales of £4.5bn is up 12.4% on prior year and positions us well to deliver a step-up in total completions in FY24 and make progress towards our medium-term targets and the return of £1bn of capital to shareholders.”

DocuSign (DOCU)

Shares in DocuSign were higher in premarket trading amid reports that Bain Capital and Hellman & Friedman are competing to acquire the provider of online signature services.

The two private equity firms are among the final bidders in the auction for DocuSign, which is set to be one of the biggest leveraged buyouts of 2024, according to Reuters.

Blackstone Inc, another buyout firm, held talks about a potential deal with DocuSign but is no longer in contention, according to two of the sources.

DocuSign went public in 2018 and saw business boom during the pandemic as demand soared for technology that allowed people to work together on documents remotely.

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