London, January 19, 2026, 11:06 GMT — Regular session
- Burberry shares dropped roughly 3% in London amid tariff concerns weighing on luxury stocks
- FTSE 100 dips as traders weigh Trump’s warning of new tariffs on Europe
- Burberry’s third-quarter trading update, set for Jan. 21, is the next key event
Shares of Burberry Group plc dropped 2.8% in London on Monday, leading the pack of luxury retailers lower after U.S. President Donald Trump threatened tariffs on Britain and seven other European countries. The FTSE 100, which tracks the largest UK-listed firms, slipped 0.6%, while the more domestically focused FTSE 250 fell 0.9%. Watches of Switzerland Group also declined, down 1.5%. 1
The move comes amid a broader risk-off mood in Europe, as investors wrestle with how far and fast trade tensions might escalate. By 0932 GMT, the pan-European STOXX 600 had dropped 1%, with luxury stocks sliding 3.1%. “Trump’s actions over the weekend have inflamed geopolitical risks while also reintroducing trade uncertainty,” said Kyle Rodda, senior financial market analyst at Capital.com. 2
Burberry faces a tricky moment. Its third-quarter trading update is set for January 21 at 0700 London time, already marked on its investor calendar. 3
Burberry slipped to 1,236 pence, dropping 36 pence or 2.83% in delayed trading. The shares kicked off at 1,250 pence, following a Friday close of 1,272, and moved between 1,229 and 1,263.5. Its 52-week span stretches from 597 to 1,376.5. 4
The selloff extended beyond the UK. European luxury giants took a hit—LVMH dropped roughly 4%, Hermes slipped about 3%, and Richemont fell close to 3.6%, all caught up in the tariff-driven decline. 5
Investors are looking to Burberry’s update to see if the holiday quarter stood strong without leaning heavily on discounts. Clues on China demand, U.S. tourist spending in Europe, and inventory levels will carry extra weight amid renewed macroeconomic worries.
Yet the stock remains at the mercy of headlines beyond its control. Should the tariff threat solidify into actual policy or spark retaliation, luxury retailers might get hit twice—first by slumping confidence, then by tangled trade flows—long before sales figures reflect the impact.
Burberry has been working hard to prove its turnaround is gaining traction. In November, it posted its first quarterly growth in two years. The company also said comparable store sales rose 2% in the second quarter, snapping a seven-quarter slide. CEO Joshua Schulman is zeroing in on trench coats and scarves to sharpen the brand’s focus. Morningstar analyst Jelena Sokolova noted the firm is “trying to reconnect more with what the brand is really about.” 6
Burberry’s January 21 trading update is next, with investors keen to see a clear picture of the holiday quarter and any change in demand amid rising trade tensions.
