Burberry set to unveil slip in profits as market cools
Fashion retailer Burberry is expected to see full-year profits take a tumble this week, as it battles with a slowdown in luxury sales sparked by China's economic woes.
City forecasts suggest that the group – famous for its trench coats and check scarves – will reveal adjusted pre-tax profits down by 7.5 per cent to about £420 million as the famous brand hits tougher times after enjoying several years of growth.
Burberry revealed last month that its fourth-quarter sales slipped 5 per cent amid lower spending by Chinese tourists in continental Europe and a collapse in the Hong Kong luxury market.
It cautioned that profits for the new financial year ending 2017 would be at the bottom end of forecasts, even with a £60m currency boost taken into account.
The group makes around a third of its sales from the Asia Pacific region and has been hit hard as Chinese tourists have reined in their spending, particularly in Hong Kong.