Hong Kong protests hit sales at Burberry

Models wearing Burberry clothesImage copyright
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Luxury fashion house Burberry has said sales in Hong Kong have fallen sharply following the violent protests in the city.

It said it expected sales to “remain under pressure” in Hong Kong, one of the key markets for its business.

The anti-government protests have gripped Hong Kong for five months and rattled stock markets.

Even so, Burberry’s first half sales rose 5%, despite a “double digit” percentage decline in Hong Kong.

Marco Gobbetti, Burburry’s chief executive, said the results were in line with the guidance earlier in the year despite the disruption in Hong Kong, where the retailer has 10 shops and usually generates about 8% of its sales.

Mr Gobbetti has been taking Burberry further upmarket since he took the helm two years ago and said the new collection from its chief creative officer Riccardo Tisci was generating “strong double digit growth”.

“We also continued to strengthen momentum around our brand and transform our distribution,” he added.


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