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Burberry Slumps on Profit Outlook After Asian Sales Drop

  • Shares decline as much as 12%, steepest drop in three years
  • Second-quarter revenue was `far worse than feared': analyst
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How Badly is China Slowdown Impacting the Luxury Sector?

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Burberry Group Plc shares fell the most since 2012 after the U.K. luxury-goods maker indicated profit will probably decline for a second straight year after sales in the key market of Asia dropped.

Full-year adjusted pretax profit will be “broadly in line” with 445 million pounds ($689 million), which is the average of recently reduced analysts’ estimates, London-based Burberry said Thursday. Second-quarter retail sales climbed 1 percent on a comparable basis, the slowest pace in three years.