Burberry shares down 12% following China slowdown
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Burberry shares tumbled 12 per cent, the largest drop in three years, as theluxury group warned that its sales had been hit by a slowdown in China.
In an example of how the global luxury market is struggling, Burberry said that retail sales were affected by “an increasingly challenging environment for luxury, particularly Chinese customers”.
Total retail sales grew just 2 per cent to £774 million in the six months to the end of September, while like-for-like sales slowed to 1 per cent. Crucially, in the Asia Pacific area, sales experienced a “mid-single digit percentage decline” while “Hong Kong
Questions & Answers
Q.How much did Burberry's total retail sales grow in the six months to September?
How much did Burberry's total retail sales grow in the six months to September?
Total retail sales for Burberry increased by only 2 per cent during the six-month period ending in September. This brought the total to £774 million, indicating slower growth.
Q.What was the sales performance like in the Asia Pacific region?
What was the sales performance like in the Asia Pacific region?
Sales in the Asia Pacific area experienced a mid-single digit percentage decline. This highlights a particular weakness in a key market for luxury goods, contributing to overall concerns.
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