Shares in luxury fashion brand Burberry (LON:BRBY) dropped sharply this morning, after disappointing results fell short of expectations.
The company lost more than tenth of its stock value, with nearly £700 million wiped from its market capitalisation.
Retail sales grew 2 percent to £774 million in the six months to September, but suffered in the UK as luxury customers from Asia took their custom to Europe instead.
Chief executive officer Christopher Bailey said in a statement:
“The external environment became more challenging during the half, affecting luxury consumer demand in some of our key markets.
“While mindful of this external volatility, our plans for the festive season position us well to return to a more positive sales trend in the all-important second half.”
Burberry are currently trading down 12.54 percent at 1241 pence per share. (1021GMT)