When Burberry Group Plc showed designer Daniel Lee’s creations to a star-studded audience last September, it looked like the brand had a good chance of becoming Britain’s own LVMH.

But plans to reinvigorate the company are now coming apart at the Burberry-checked seams. It warned on Friday that underlying operating profit in its current fiscal year could be about £100 million ($127.2 million) lower after a disappointing Christmas. Shares are down almost 50% over the past year, with the market value falling to £4.4 billion from £8.6 billion over the period.