Burberry’s total sales in the six months to March 31, 2016 slipped to £1.41 billion (US$2 billion) from £1.42 billion (US$2.016 billion) a year earlier. Underlying constant currency retail revenue, which accounts for 75% of the Group’s revenue, was flat year-on-year for the period.
Wholesale revenue dropped 1%. Like-for-like retail sales were down 5% year-on-year, mainly affected by a sharp drop in travelling customer spending, particularly as luxury tourists avoided Europe due to security issues.
The company’s shares plunged nearly 7.5% in London after the announcement.
Just like Prada, Burberry is paying the price of its over-dependency in the Hong Kong and Chinese markets, with weakness in both retail and wholesale divisions, according to analysts. China accounts to nearly 40% of Burberry’s sales.
Read more on Prada results here.