Pro-democracy protests in Hong Kong disrupt sales for luxury retail group Burberry
Luxury goods maker Burberry is reporting falling sales in Asia because pro-democracy protests in Hong Kong disrupted trade during China's crucial "Golden Week" national holiday.
The company reported in a trading update Wednesday that retail revenue increased 14 percent to 604 million pounds ($915 million) overall in the third quarter ending Dec. 31. Comparable sales were up 8 percent overall but in the Asia-Pacific region, the company delivered low single-digit percentage growth.
CEO Christopher Bailey says Burberry will maximize its opportunities in the final quarter - including Lunar New Year.
David Alexander, consultant at Conlumino, says between the Ukraine crisis impacting luxury demands in Russia and demonstrations in Hong Kong weakening consumer sentiment in China, "global events seem to be conspiring against luxury retailers at present."