Burberry's share price dropped 4.7% in early morning trading on 20 May, despite the British clothing retailer reporting results that beat the company's forecast. The fashion brand, famous for its iconic "Haymarket check", was the biggest FTSE 100 faller.
The retailer reported a 7% rise in full-year pre-tax profits but had to adjust its 2016 profit guidance as it expected exchange rates to work against them.
Problems with the exchange rates, in combination with a challenging market, forced it to report a £10m retail and wholesale profit guidance, 80% less than it reported in April.
"Underneath the numbers read well and are ahead of forecasts and the company is doing a lot to make the business sustainable, but lowering 2016 guidance has hurt Burberry today, and luxury is always going to be a choppy sector quick to react to changes in consumer confidence," Will Hedden, dealer at London Capital Group said.
Burberry opened stores in Los Angeles and Tokyo this financial year, though chief executive Christopher Bailey said the company has to focus on the brand's British signature.
"At this early stage of the year, we are seeing increased uncertainty in some markets," Bailey said. Against this background, we will continue to manage our business dynamically – capitalising on the significant opportunities we have by channel, region and product to create long-term shareholder value."
Burberry performed well in the Americas and EMEIA (Europe, Middle East, India and Africa), reporting "double-digit" revenue growth.
Its Asian Pacific division performed weakest, reportedly due to the unrest in Hong Kong, resulting in a slight sales decline in the second half of the year. The company cut its dividend by 10% to 35.2p per share.