Burberry burned by sluggish sales in Europe and Hong Kong
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British fashion brand Burberry said difficult economic circumstances will damage profit this year.
Burberry hit by fall in Chinese spending in Hong Kong and Europe as comparable sales fall 5% https://t.co/uWsXONGyvrpic.twitter.com/wq6dJlksM0
— Sky News (@SkyNews) April 14, 2016
The luxury brand said tourist spending in Europe has dropped and demand is weaker in Hong Kong, which has depressed sales.
Burberry reported a revenue of $2bn for the six months to April.
Inside a night of fashion and art with
Burberry</a> in <a href="https://twitter.com/hashtag/Milan?src=hash">#Milan</a> celebrating our 25 & 26 May sales <a href="https://t.co/5xaDiA7xnA">https://t.co/5xaDiA7xnA</a> <a href="https://t.co/mIReH4rwsy">pic.twitter.com/mIReH4rwsy</a></p>— Sotheby's (Sothebys) April 14, 2016
The weaker sales and muted outlook pushed Burberry shares more than 6 percent lower in early trading in London.
Burberry’s luxury rivals are also suffering from the economic slowdown. Sales at industry leader LVMH missed forecasts on Monday.