Image source: Getty Images
Great taste is always in fashion. Whatever one thinks about the taste of fashion house Burberry (LSE: BRBY), though, its shares have fallen deeply out of fashion in the City. Over the past year, the FTSE 100 company has seen its share price crash by 68%.
In other words, I could buy three Burberry shares for around the price I would have paid for just one a year ago.
I recently added the company to my portfolio, because I think it could turn out to be a deep bargain.
Why the shares have tumbled 68%
To begin, though, I will address the key issue. After all, a FTSE 100 share rarely if ever loses 68% of its value in one year for no reason.
The problems in the business were already visible in last year’s performance and did not start in the most recent quarter. However, even a quick glance at the quarterly update issued this week shows some of the problems.
Retail revenues…
