Burberry, the luxury brand known for its stylish trench coats and scarves in its signature camel, black and red checked pattern, has released its first-quarter results.
Although sales of the company's high-end clothing has remained strong, overall sales have slowed in the three months to the end of June.
The results for Q1 show growth of eight per cent, down from 11 per cent in the previous three months. According to the firm, this is due to weaker demand in Asia.
In Hong Kong and mainland China, sales were weak during the period, the company reports. However, the firm has also seen strong sales in Europe and the Americas and in Japan, the brand has seen "exceptional growth, albeit off a small base."
Ongoing challenges and a focus on growth
Commenting on the financial results, chief executive Christopher Bailey explained that the company was aware that the market continues to be challenging, but that they would continue to focus on growth potential.
"While mindful that the external environment remains challenging, we will continue to focus on growth opportunities across channels, regions and products, with exciting plans for the year ahead," he said.
Burberry has reported revenue of £407 million in the first quarter of the financial year. This number is up compared to £370 million at the same time last year, but is less than the £414 million predicted by analysts.
The group reported pre-tax profits of £445 million for the year ending March 31st. This was a one per cent fall compared to the year before. However, after adjusting for currency movements, Burberry says that profits in underlying business have actually gone up by seven per cent to £456 million during the period.
One thing that has helped to boost the brand's numbers is its tie-up with English fashion model Cara Delevingne. This has led to a rise in sales of cashmere scarves, perfume and coats.
The company is also facing criticism from shareholders over the £7.9 million pay package Mr Bailey received after taking over as chief executive from Angela Ahrendts in May 2014.
This morning, Burberry's stocks were down 3.09 per cent to 1,570.00, compared to yesterday's close of 1,620.00.
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