Luxury fashion brand Burberry has seen its sales growth ease amid weakening demand in Asia and a volatile American market.
The 159-year-old firm, famous for its checked trench coats, said yesterday that retail sales rose 8 per cent to £407 million in the three months to the end of June – down on the double-digit growth recorded a year earlier.
Like-for-like store sales fell sharply in Hong Kong – one of its most profitable regions – after recent pro-democracy protests kept mainland Chinese tourists away.
However, chief financial officer Carol Fairweather said the brand remained committed to the area.
“We manage the business for the long term, always looking through that lens,” she said. “All of those [Hong Kong] stores remain profitable and so no change to strategy.”
Sohil Chotai, an analyst at Edison Investment, noted: “The near term will be challenging due to currency volatility and weakness in Hong Kong and China.”
The results will add pressure on Burberry’s boss Christopher Bailey, who faces shareholders at tomorrow’s annual meeting.