Burberry warns fall in HK sales could impact its full-year margin
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British luxury brand Burberry warned on Wednesday that a fall in sales in the key market of Hong Kong in the last quarter of 2014 could impact its full-year margin. Pro-democracy protests began choking parts of the Asia financial center in late September, disrupting business in one of the world’s top markets for luxury companies, which accounts for about USD9.7 billion of global luxury sales, or 4 percent of the total, according to estimates by Bernstein Research.
Questions & Answers
Q.Which specific event caused Burberry to warn about potential margin impact?
Which specific event caused Burberry to warn about potential margin impact?
Burberry issued the warning due to a decline in sales in Hong Kong during the last quarter of 2014. This fall was linked to pro-democracy protests that began disrupting business there in late September.
Q.What is the estimated value of luxury sales in Hong Kong mentioned in the article?
What is the estimated value of luxury sales in Hong Kong mentioned in the article?
According to Bernstein Research estimates, Hong Kong accounts for approximately USD9.7 billion of global luxury sales. This represents about 4 percent of the total worldwide luxury market.
Q.When did Burberry issue this warning about its full-year margin?
When did Burberry issue this warning about its full-year margin?
Burberry issued this warning on Wednesday. The concern was raised after experiencing a fall in sales within the key Hong Kong market during the final quarter of 2014.