Burberry Falls Most in a Year as Asian Woes Erode Brexit Gain
- Retailer’s sales in Hong Kong decline by more than 10 percent
- Fashion label’s shares fall as much as 10% in London trading
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Burberry Group Plc shares fell the most in a year after the British trench coat maker reported declines in its Asian business and worsening results at its wholesale unit, offsetting a Brexit-inspired boost in tourist spending in the U.K.
The stock declined as much as 10 percent in London, the biggest intraday drop since Oct. 15 of last year. Consumer demand remained weak in Hong Kong -- a key luxury market that accounts for about 8 percent of Burberry’s revenue -- with sales falling by more than 10 percent in the first half of its fiscal year. The company also lowered its sales outlook for the wholesale business to a decline of about 15 percent in the second half, worse than the 10 percent falloff expected earlier in the year.