FTSE 100 slides as Burberry shares fall out of fashion

Shares in Burberry sank 10% 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 closing down 45.62 points at 7,484.10.

Worries about the health of the UK property market hit shares in 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.

Adding to the downbeat news, housebuilder Redrow said “ongoing political and economic uncertainty” had led to a slowdown in sales during recent weeks.

Shares in Redrow – a FTSE 250 member – fell nearly 7%%. Elsewhere in the sector, Persimmon and Taylor Wimpey shed 4% and 3% respectively.

There was also gloomy news from estate agent group Countrywide, which said the market remained “challenging” and was likely to be lower this year than in 2016.

Countrywide said its full-year results were expected to be at the lower end of market forecasts, and its shares slipped 2.9%.

On the currency markets, the pound edged up 0.21% against the dollar to $1.3145, but fell 0.19% against the euro to €1.1290.