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Hong Kong protests hit Burberry and Cathay Pacific | |
(about 1 hour later) | |
Two companies with major operations in Hong Kong have revealed the financial impact of violent protests in the City. | |
Luxury fashion house Burberry said Hong Kong sales had fallen sharply and would "remain under pressure". | |
Airline Cathay Pacific said the civil unrest had "been exceptionally challenging, severely impacting demand and operations of the business". | |
The anti-government protests have gripped Hong Kong for five months and rattled stock markets. | The anti-government protests have gripped Hong Kong for five months and rattled stock markets. |
Burberry said it incurred a "double digit" percentage decline in sales in Hong Kong - where it has 10 shops and usually generates about 8% of its sales. | |
Even so, the company's total sales rose 5% in the six months to 28 September. Marco Gobbetti, Burberry's chief executive, said the results were in line with the guidance earlier in the year despite the disruption in Hong Kong. | |
Mr Gobbetti has been taking Burberry further upmarket since he took the helm two years ago and said the new collection from its chief creative officer Riccardo Tisci was generating "strong double digit growth". | Mr Gobbetti has been taking Burberry further upmarket since he took the helm two years ago and said the new collection from its chief creative officer Riccardo Tisci was generating "strong double digit growth". |
Cathay Pacific - majority-owned by the Swire investment company, while Air China has a 30% stake - said the short-term outlook remained "challenging and uncertain". | |
The Hong Kong flag carrier lowered its profit guidance for the second time in less than a month. | |
The "forward bookings outlook remains weak and uncertain", the airline said, with passenger traffic dipping "significantly", particularly for inbound flights from mainland China. | |
The airline changed its top management in August when its then chief executive, Rupert Hogg, quit after the airline became embroiled in a controversy over the Hong Kong protests. |