Burberry chief creative and executive officer Christopher Bailey has warned of a “challenging external environment for luxury” as total sales at the firm slow by 1% to £1.41bn.
For the six months to March 31 like-for-like sales fell 2% while total retail revenue remained flat year-on-year at £1.06 bn. Wholesale was down 1% to £330m.
Bailey said: “In an external environment that remains challenging for luxury, we continue to focus on reducing discretionary costs and are making good progress with developing enhanced future productivity and efficiency plans.
Meanwhile, brand momentum is strong, digital continued to outperform in the half and innovation in new products is resonating well with our customers.”
The business said full year profits before tax are likely to be at the bottom of analysts’ expectations this financial year.
Andrew Hall, analyst at Verdict Retail said the poor like-for-like retail performance was thanks largely to the “dire performance” of Burberry in Hong and Macau.
He added: ”Burberry can certainly be proud of the hard won successes, but long term strategic leadership is required to overcome the blows dealt by performance in some Asian markets. Until this is achieved, the good work will continue to be overshadowed by falling demand in Hong Kong and Macau.”