A sharp sales slowdown in China and Hong Kong led Britain's Burberry to miss forecasts for first-half sales growth and warn of an increasingly challenging environment for luxury sales.
The firm said accelerated actions to control costs were expected to minimise the impact on profit for its 2015-16 year.
It said it expected to meet the average forecast of those analysts who have recently updated forecasts, which is £445m. Burberry made £456m in 2014-15.
Chinese shoppers, which account for 30-40% of Burberry's global revenue, have grown increasingly cautious this year after the country's economy weakened, its currency devalued and its stock market tumbled.
The 159-year-old Burberry, famous for its trench coats and cashmere scarves, said its retail revenues rose 2% to £774m in the six months to September 30.
That compared to first quarter growth of 8% and was below analysts' average forecast of £818m.
First half comparable store sales growth was 1% compared to analysts' forecasts of 5% and growth of 6% in the first quarter.
The firm saw a mid single-digit percentage decline in comparable store sales in the Asia Pacific region, which includes Hong Kong and China.
Burberry said the comparable store sales decline in Hong Kong was worse than the double digit percentage fall reported in the first quarter as footfall continued to drop, while mainland China comparable sales decreased slightly in the half.
That outcome was offset by stronger growth in the Europe, Middle East, India and Africa (EMEIA) region and steady growth in the Americas.
