Burberry shares slump 12% as China sales disappoint
October 16, 2015, 3:12 pm

Shares in Burberry have slumped 12% after the luxury retailer reported a fall in revenue in Asia.

Group revenue was flat at £1.1bn in the first half of the year, but investors focused on the dip in sales in China, where the company said trading was "increasingly challenging".

The sales dip feeds into wider concerns about the slowdown in the Chinese economy.

The retailer said it would ramp up cost savings to offset slowing sales.

"The external environment became more challenging during the half, affecting luxury consumer demand in some of our key markets," said Burberry boss Christopher Bailey.

"In response, we have intensified our focus on driving sales and productivity, while taking swift action on discretionary costs."

He said he expected sales to pick up in the second half of the year.

Richard Hunter, head of equities at broker Hargreaves Lansdown, described the results as "underwhelming" and said the group was suffering in Asia and the US, as "general economic malaise" hit demand.

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