Burberry pre-tax profit hit by fewer Chinese tourists in EuropeStaff writer ▼ | May 18, 2016
Burberry reported a fall in full-year profits and said it expects the challenging environment for the luxury sector to continue.
Burberry Group like-for-like sales were down 1%
Burberry plans to revamp its retail operations and is aiming to make annual savings of at least £100m by 2019. The group has been hit by a slowdown in Chinese tourists visiting its stores in Europe, and weak demand in Hong Kong.
While group like-for-like sales were down 1%, the company said if results from Hong Kong and Macau were excluded, then sales would have been up by 3%.
The company said Hong Kong, which accounted for 9% of its global retail and wholesale revenue, had suffered a "significantly lower footfall".
It expects the majority of its future growth to come from Chinese customers, who already account for 40% of Burberry's retail sales. The company said it was focusing on improved service, as well as bespoke products and campaigns for this market. ■