FTSE 100 Index drops as Burberry posts 10% fall in profits
Luxury fashion firm Burberry saw shares come under further pressure as it unveiled an ambitious cost-cutting drive after revealing more profits gloom.
The FTSE 100 listed firm posted a 10% fall in annual profits and warned the "challenging environment" showed no sign of easing, with profits in 2017 set to come in towards the bottom end of analyst expectations.
Despite laying out aims to cut costs by "at least £100 million" within three years, its shares dropped 3%, while the wider FTSE 100 Index was also in the red, down 27.8 points to 6140.
The falls come after a downbeat end to trading on Wall Street overnight and declines on Asian markets amid concerns that higher-than-expected US inflation could trigger rate hikes.
Sentiment in London also impacted as official figures showed there was evidence the jobs market could be cooling off despite a fall in u nemployment and a record number of people in work.
Unemployment dipped by just 2,000 in the quarter to March to 1.69 million - described as "modest" by the Office for National Statistics.
In London, Burberry was among the worst hit, down 30.5p to 1112.5p as its weaker profits outlook took the shine off turnaround plans, including an overhaul of its retail operations to boost sales online and in stores.
Elsewhere, Big Six energy provider SSE was 4.5p lower at 1542.5p after it posted a 19.3% drop in full-year pre-tax profits to £593.3 million after lower energy prices and increased competition took their toll on the firm.
The group, which lowered energy prices for its 8.5 million customers in January, lost 210,000 electricity customer accounts and 170,000 gas accounts in the year to March.
Housebuilders were enjoying another strong session, with Taylor Wimpey building on Tuesday's gains after it upgraded its profit guidance for the year.
Taylor rose another 2.2p to 195.8p, while Charles Church rival Persimmon was 37p higher at 2047p and Barratt Developments lifted 5.8p to 556.8p.