Upmarket fashion house Burberry (LON:BRBY) reported higher revenue and sales but said Asia and Hong Kong dragged on the numbers.
Burberry said first quarter underlying retail revenue increased 8% to £407mln while comparable sales gained 6%.
There was double-digit growth in the retailer's European, Middle East and Africa operations and a high single-digit rise in the Americas.
Sales of its heritage trench coats and cashmere scarves continued to rise strongly, as well as ponchos, an emerging key category.
But the company's Asia Pacific arm faced a low single-digit decline with a further slowdown in Hong Kong, which Burberry described as a "challenging luxury market".
The group said the trading backdrop remained tough but said it would keep its focus on growth opportunities.
Annual retail and wholesale profit should be about £20mln higher than last year, up £10mln since guidance in May, but it added: "We currently expect this increase to be offset by a more adverse geographic mix, particularly from the high-margin market of Hong Kong."
It also said it still expected annual profits at constant exchange rates to be weighted more towards the second half than last year.
Richard Hunter at broker Hargreaves Lansdown said: "Burberry’s updates had become the source of high expectations until the slight disappointment in May, such that over the last three months the share price has dipped by 9%.
"Over the last year, however, the shares have added 13%, as compared to a flat FTSE100 in that period, with the market consensus recently having improved to a cautious buy in light of prospects.”
It plans to open 15-20 shops this year and to close a similar number. New stores were "still expected to contribute low single-digit percentage growth" this year.
Openings included a store in New York and relocations in the Mall of the Emirates, Dubai and Westfield White City, London. It also expanded its Regent Street flagship store in London.
Burberry expected total wholesale revenue at constant exchange rates to be broadly unchanged in the six months to September 30 against £317mln last time.
Mainland China comparable sales grew by a low single-digit percentage but Japan saw exceptional growth, albeit off a small base. Digital continued to outperform.