Burberry reported fourth-quarter sales in line with expectations on Thursday, as the Iran war dampened tourism and buying activity, offsetting gains from the British luxury brand's heritage-focused turnaround.
A hit to global travel and rising living costs linked to the Middle East war have disrupted early signs of recovery in the $400 billion luxury market, squeezing profits and deepening a downturn that followed the post-pandemic boom.
Burberry, seen among the least exposed luxury companies, reported comparable retail sales growth of 5% in the three-month period ended March 28, bringing annual growth to 2%, in line with analysts' expectations in a company-compiled poll.
However, sales in Europe, the Middle East, India and Africa fell 2% in the fourth quarter, while other regions recorded strong growth, Reuters reported.
Burberry also said that Chair Gerry Murphy will be retiring later in the year, and will be succeeded by William Jackson.
