Burberry slump to test new boss
Fashion designer Burberry has said that like-for-like sales slipped 3% in the first quarter, laying bare the challenges facing incoming chief executive Marco Gobbetti.
The company said it faces "challenging and underlying cost inflation pressures", adding that its outlook for the US in particular is "cautious".
Underlying turnover was flat at £423m, with Asia, Europe, the Middle East and the Americas all showing a fall in retail sales.
However, the pound's fall in value since the EU referendum result means Burberry's profits will be boosted to the tune of £90m, up from the £50m benefit pencilled in back in April.
The pound has fallen from highs of $1.50 before the vote to $1.32. The majority of Burberry's sales come from overseas.
Outgoing chief executive Christopher Bailey said: "In what remained a challenging external environment, underlying retail sales were flat in the first quarter."