Burberry’s downbeat outlook for the year to next March came as the company said sales for the second half of its last fiscal year ended March 31, 2016, dipped by 1 percent to £1.41 billion (US$2 billion).Retail revenues were flat at £1.06bn following a 2pc decline in comparable sales, stretching to a 5pc drop in the fourth quarter as Chinese demand for luxury goods dwindled. Burberry had raised hopes it was turning the corner earlier this year when it halted sales declines in the third quarter, with like-for-like trading remaining flat.
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In a business climate that chief executive Christopher Bailey described as “challenging”, sales in Hong Kong fell more than 20 per cent for a third straight quarter.
But it said that excluding any benefits from these changes, it expects to see adjusted pre-tax profits for the full year to 2017 around the bottom range of analysts’ expectations.
LONDON, April 14 Britain’s top share index edged lower down from its highest close in 2016 on Thursday, driven by a tumble in fashion firm Burberry after it reported falling sales and warned of tough trading conditions.
Burberry’s luxury rivals are also suffering from the economic slowdown.
Upmarket fashion house Burberry Group PLC (LON:BRBY) revealed lower sales and revenue and said wealthy tourists in Europe were buying less.
The Europe, Middle East, India and Africa region was broadly unchanged, though Europe slowed and the United Kingdom and Middle East remained “difficult” throughout the half.
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