Sales slow at trench coat maker Burberry amid weakening demand in Asia

IndustriesAssociated Press

Trench coat maker Burberry is reporting slowing sales amid weakening demand in Asia and a volatile American market.

The luxury goods company said Wednesday that retail revenue rose to 407 million pounds ($637 million) in the three months ended June 30, driven by strong sales of British-made heritage trench coats and cashmere scarves. The figures represent an 8 percent increase in "underlying" sales, down from 17 percent in the same period last year.

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The results will add pressure on CEO Christopher Bailey, who faces shareholders at Burberry's annual general meeting Thursday. Bailey faced a near revolt last year when shareholders questioned his package of 7.9 million pounds.

Pensions & Investments Research Consultants, an independent corporate governance consultancy, urged shareholders to vote against Burberry's pay policies again this year.