Burberry out of fashion as FTSE tumbles

Market report Scott Reid

Fashion house Burberry proved to be a drag on the top flight after it revealed plans to close stores and push even further up the luxury market.

The group said that it will ditch its outlets within department stores and shut stores that are not found in or near communities of luxury shoppers. Its shares slid 198p to 1,787p.

The wider FTSE 100 index ended the day down 45.62 points at 7,484.1 as other major European indices also tumbled.

David Madden, market analyst at CMC Markets UK, said: “Stocks in Europe sold-off as the sudden and severe decline in the Nikkei 225 overnight triggered fears around the world.

“Lately, stock markets in Europe have been lacklustre as there has been no major change to the economic or political outlook.”

Vodafone shares were one of the best performers on the Footsie, up 5.9p to 221.8p after revealing it was entering into partnership with network infrastructure firm Cityfibre to bring fibre connectivity to as many as five million UK homes and businesses by 2025. Cityfibre surged 17.5p to 60.75p on the news.

Sainsbury’s fell 4.3p to 229.2p as the grocery giant reported a fall in half-year profits and a sharp slowdown in sales growth amid fierce competition in the market.

Shares in Redrow tumbled 44p to 597.5p as the housebuilder said that “ongoing political and economic uncertainty” had caused sales to slip in recent weeks compared to a “very strong” market last year. Persimmon was down 110p at 2,662p and Barratt Developments fell 23p to end the session at 612p. The stock soared after the company announced a major partnership with Vodafone that will bring fibre connectivity to millions of UK homes. Shares were weaker after the car parts retailer revealed that half-year profits took a knock from increased costs linked to the Brexit-hit pound.