Falling China, Hong Kong sales take Burberry shares to the cleaners

Burberry is blaming Chinese and global stock markets, currency volatility and slowing economic growth for a 4% drop in sales during the third quarter of 2015 that sent shares in the British luxury fashion retailer firm to a nearly three-year low, at one point wiping out US$1 billion in market value, Reuters reported. “We believe this affected the confidence of and thus demand from luxury consumers, and especially the Chinese customers in some of our key markets,” Chief Financial Officer Carol Fairweather told reporters. Sales in Hong Kong and China, which together account for 30-40% of Burberry’s global revenue, were down more than 20% and 5%, respectively.