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Burberry Profit Setback Caps Luxury Industry's Dismal Week

  • Full-year profit will be at low end of analysts' estimates
  • Shares decline most in six months, leading sector lower
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Burberry Fashions Lower-Than-Expected 4Q Sales

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Burberry Group Plc reported weaker-than-expected sales and predicted earnings this year at the low end of estimates, sending its stock down the most in six months and capping a dismal week for the luxury-goods industry.

In a business climate that Chief Executive Officer Christopher Bailey described as “challenging,” sales in Hong Kong fell more than 20 percent for a third straight quarter. Tourists are spending less in Europe following terrorist attacks and demand remains uneven in the U.S., the company said. The shares slid as much as 8.1 percent.