Burberry sales rise after 'robust' quarterContinue reading the main story
High-end fashion group Burberry has reported a rise in revenue as sales continue to grow in Asia.
Total revenue for the three months to the end of June was £408m ($634m), 11% higher than a year earlier.
However, the increase was less than in the previous quarter and below market expectations, leading Burberry shares to fall 7.4%.
The company said it continued to see strong sales growth in Asia and particularly China.
Asia accounts for a higher proportion of Burberry's revenues than any other region.
"With continued brand momentum, Burberry has delivered a robust first quarter," said chief executive Angela Ahrendts.
"Sales in retail, now about 70% of the business, increased by 14%."
Wholesale revenue came in at £102m, up 9% on a year earlier.'Great expectations'
The quarterly sales figures represent a slowdown on previous quarters, and analysts said the company's share price was suffering as a result.
"Burberry shares have fallen foul of great expectations, as robust sales growth came in shy of analyst estimates," said Richard Hunter at Hargreaves Lansdown.
"If set against yesterday's update from Marks and Spencer, for example, the numbers are in a different league, as are the prospects. However, the shares' valuation is quite full and the weight of expectation is heavy."
On Tuesday, M&S reported a drop in sales after stock issues and wet weather hit sales at its clothing department.