Burberry hit by sales slump in Hong Kong
Trendy trench coat maker Burberry revealed more sales pain in Asia as trading worsened in Hong Kong after political unrest put off Chinese shoppers from travelling to the city.
The fashion house said it saw a "double-digit decline" in Hong Kong sales in the three months to June 30 amid a "challenging luxury market" as trading continues to be impacted by last year's lengthy pro-democracy protests in the city.
Burberry's first quarter Hong Kong hit saw same store sales across Asia suffer a low single-digit percentage fall, while overall like-for-like retail sales growth slowed to 6% from 9% in its previous financial year.
Shares fell 2% on the sales blow.
Burberry said full-year retail and wholesale profits would be £20m higher than in 2014/15, if exchange rates stay the same - a £10m improvement on the guidance which was given with its results in May.
But it added this benefit would be wiped out by the Hong Kong woes.
The market has a particularly big impact on Burberry, as it has in the past been very profitable.