Burberry sales drop as luxury demand slows

Burberry (LSE:BRBY), the luxury English fashion brand, reported a 34% drop in annual operating profit.

The disappointment triggered a 6% decline in its share price​​, down to 1,115p in London.

Its revenue amounted to £2.97 billion for the year to 31 March, reflecting a 4% fall on a ‘constant currency’ basis (i.e. excluding differences in foreign exchange rates).

Giving its outlook for near-term trading, Burberry described “a still uncertain external environment" and said its trading is expected to remain challenging.

"Executing our plan against a backdrop of slowing luxury demand has been challenging,” chief executive Jonathan Akeroyd said.