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Burberry sounded the alarm about next year when Chin

Burberry’s recovery derailed by China’s draconian Covid restrictions as sales in the luxury fashion firm’s key market fall 13%

Burberry has sounded the alarm over the next year as China’s draconian lockdowns threaten to derail its turnaround plan.

Reporting results for the year to April 2 yesterday, the luxury fashion house did not provide an update on current trading. But it did say that sales in China fell 13 percent in the latest quarter.

It relies heavily on sales in China and said lockdowns in the country began to take their toll in March.

Checking profits: Luxury fashion house Burberry said sales in China fell 13% in the latest quarter with many Chinese cities now under strict lockdown measures

Checking profits: Luxury fashion house Burberry said sales in China fell 13% in the latest quarter with many Chinese cities now under strict lockdown measures

Many Chinese cities have been under full lockdowns for weeks, sending a shock to the global economy and fueling supply chain chaos.

Burberry makes two-fifths of its sales in China and is popular with the increasingly wealthy upper and middle classes.

He faces the impact of strict lockdowns, but also the prospect of Chinese shoppers spending less as the country emerges from the pandemic as its economy takes a hit.

Goldman Sachs has cut its forecast for China’s economic growth this year to 4 percent as the covid-zero policy takes its toll, down from an earlier estimate of 4.5 percent growth.

Shore Capital retail analyst Clive Black said: ‘What Burberry highlighted is the uncertainty around China. He is clearly worried about where things might go.

Burberry downplayed the lockdowns and stood by its forecasts for the year before “high-single-digit” sales growth.

But he said that “will depend on the impact of Covid and the rate of recovery in consumer spending in mainland China.”

Chief Financial Officer Julie Brown said: “We are always prepared for a positive case and we are always prepared for a rebound and indeed in China we find that the recovery is very strong when it comes.”

For the year to April 2, Burberry posted £2.8bn in sales, a jump of 23 per cent. Profit for the full year was £523m, up 32 per cent from the previous year.

share it rose 0.5 pence to 1,584 pence, in new boss Jonathan Akeroyd’s first exit as chief executive.

He took over in April and has led Versace since 2016.

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