Burberry tumbles 20% on profit warning

Shares in luxury brand retailer Burberry today dropped nearly 20% after it announced profits will be at the lower end of forecasts this year.

Ahead of the key retail trading period through Christmas, Burberry said in a short statement that sales have dipped in recent weeks. As a result, it warned investors profits will likely come in at the bottom of estimates. The group said: "Ahead of the key retail trading period in the second half, Burberry currently expects adjusted profit before tax for the 12 months to 31 March 2013 to be around the lower end of market expectations." In reaction, shares in the retailer - a favourite of UK fund managers including Kames Capital's head of UK equities Stephen Adams, and Richard Buxton...