Oct 7, 2013
Burberry CEO says luxury sector may face prolonged China slowdown
Oct 7, 2013
PARIS, France - China's slowdown could be more than just a passing phase for the luxury goods sector, the head of British fashion house Burberry told French newspaper Les Echos in an interview published on Monday.
The Chinese economy's 2013 growth looks set to meet the government's 7.5 percent target, but that would still represent the slowest pace of expansion in 23 years. A recent government crackdown on conspicuous spending has also hit sales of luxury items.
"This Chinese slowdown is maybe not a temporary accident but a new normal," Burberry Chief Executive Angela Ahrendts was quoted as saying.
Shares of Burberry were down 1.7 percent at 16 pounds by 0755 GMT.
Burberry, which rang alarm bells on a slowdown in China more than a year ago, has shut half its stores in China since it took over its distribution network, Ahrendts said.
"There are other growth opportunities in the world," she was quoted as saying, listing Latin America and Indonesia, which she described as "the new China".
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