Burberry Group PLC (LSE:BRBY) shares fell 3.4% after Paris-listed rival Kering, owner of the Gucci label, reported a larger fall in first-quarter sales than analysts had forecast.
Posting results overnight, Kering said sales fell 14%, with a 25% drop at Gucci and 9% at Yves Saint Laurent. Other houses, including Balenciaga and McQueen, were down 11%.
“As we had anticipated, Kering faced a difficult start to the year," said chairman and CEO François-Henri Pinault, adding that the group is "increasing our vigilance to weather the macroeconomic headwinds our industry faces".
Sales at directly operated stores fell 16% on a like-for-like basis, with those in Asia-Pacific down 25%, in line with the poor fourth quarter of last year, while Western Europe and North America both saw LFL sales fall 13% and Japan 11%.
Wholesale revenue dropped 23%.
Analysts at Jefferies said the results pointed to a "weakening backdrop" since February, with "the uncertainties around reigniting Gucci's desirability remain plentiful".