Lower sales in Hong Kong and an overly strong British pound have forced Burberry to lower its profit forecast for the current fiscal year.
First drop since 2009
British fashion label Burberry now expects a 40 million pound (55 million euro) profit drop in its current fiscal year compared to its previous forecast. In its previous fiscal year, its pre-tax profit dropped 1 % to 455.8 million pounds (640 million euro), its first drop since 2009.
Burberry's stores in Hong Kong have to deal with lower customer levels, which has impacted its sales. Its South and North American growth is also slowing down, but luckily for Burberry, Europe, the Middle East, India and Africa continue to perform well.
The strong British pound has also impacted its bottom line, just like it did last year: exchange rate fluctuations lowered its profit 38 million pounds (53 million euro) back then.