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Burberry says sales fell in Hong Kong in late 2014
[BERLIN] 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.
Known for its raincoats with camel, red and black-check patterned linings, Burberry said retail sales rose 14 per cent to 604 million pounds (US$916 million), with comparable growth of 8 per cent.
Burberry said Asia-Pacific delivered low single-digit percentage growth in its third quarter, October-December, compared to double-digit growth in the previous six months, as sales in the high-margin market of Hong Kong fell slightly.
It said the slowdown in Hong Kong and a change in the regional sales mix had more than offset a modest improvement from exchange rate movements, which it had said in November could hurt its full-year retail/wholesale margin.
The global luxury goods industry is facing a testing time, with the Ukraine crisis hitting demand in Russia and pro-democracy demonstrations in Hong Kong adding to concerns about a slowdown in China, where a government crackdown on corrupt gift giving has hurt luxury sales.