Do Burberry Earnings Forecast Trouble For Luxury Retailers?

British luxury fashion brand Burberry is trading down by about 5.0 percent on Thursday after reporting disappointing Q1 sales. U.S. investors are wondering if Burberry's weakness will translate to weak quarters for other luxury retailers like Lululemon Athletica inc. LULU, Coach Inc COH, Kate Spade & Co KATE, Tiffany & Co. TIF and Michael Kors Holding Ltd KORS.

Burberry’s struggles are nothing new. In fact, the retailer reported disappointing earnings in the last two quarters as well, and the stock is down about 30 percent in the past year.

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Fortunately for U.S. investors, Burberry’s performance isn’t necessarily an indication of earnings weakness for U.S.-listed luxury brands. There’s no question that the past year has been difficult for all of these luxury brands, but Coach and Michael Kors have still been able to deliver earnings beats in both of the last two quarters, and the other three brands beat consensus Wall Street earnings estimates in one of the past two quarters.

It’s certainly not a good sign for other luxury retailers to see Burberry’s Q1 struggles, but it doesn’t mean that all hope is lost.

Coach is expected to be the first of these brands to report Q1 earnings on April 26.

Disclosure: the author holds no position in the stocks mentioned.