British fashion brand Burberry said difficult economic circumstances will damage profit this year.
British fashion brand Burberry said difficult economic circumstances will damage profit this year.
ADVERTISEMENTBurberry 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.