Home news FTSE 100 falls as Burberry shares fall out of fashion

FTSE 100 falls as Burberry shares fall out of fashion

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Shares in Burberry sank 9% after the fashion house announced plans to move further upmarket.The company said it would close some stores in the US and Europe as part of its plans to “sharpen” the brand.The news came as it reported a 26% rise in half-year profits to £128m with like-for-like sales up 4%.Burberry was the biggest faller in the FTSE 100, with the UK’s benchmark share index down 18.83 points at 7,510.89 in early trade.Worries about the health of the UK property market weighed on housebuilders. The latest survey from the Royal Institution of Chartered Surveyors indicated that house prices are now falling in four areas of the country, and that the market is set to remain subdued in the short term.Among the housebuilders, Persimmon, Barratt Developments and Taylor Wimpey were all down by more than 2%.Estate agent group Countrywide added to the downbeat mood for the sector after it said the market remained “challenging” and was likely to be lower this year than in 2016.The company said its full-year results were expected to be at the lower end of market forecasts.Sainsbury’s shares fell more than 2% after the supermarket reported a fall in in half year profits.On the currency markets, the pound fell 0.1% against the dollar to $1.3104 and edged 0.05% lower against the euro to €1.1308.
Source: BBC