Burberry sales hit saved by weak sterling

The luxury brand has struggled so far in 2016...

Burberry has reported that it has suffered a 3% fall in like-for-like sales while retail revenue remained steady at £423m (€507m) after what the luxury brand described as a "challenging" quarter.

The firm was hit by the global slowdown and international market volatility which dogged the first three months of 2016 - spending weakened in Hong Kong and China, while fewer cash-rich tourists came to Europe and splashed on high-end goods.

On Monday it announced that its chief executive, Christopher Bailey will step away from the company - he will be replaced by Marco Gobbetti who joins from Céline where he delivered double-digit sales growth while competitors struggled.

It notes that orders for the second quarter have been soft as fashion and beauty retailers remain cautious.

However, the firm is likely to be one of the winners of the post-EU referendum weakening of sterling values - if the pound's value remains low the firm's profits could be boosted by up to £90m (€108m).

In May, Burberry reported that its annual pre-tax profits for the year to March 31st had fallen by £29m to £415.6m.

The company's shares have lost one third of their value during the past 12 months.