Struggling with weak demand from Chinese and US consumers, Burberry Plc is projected to report another quarter of declining sales.

As per an estimate by Bloomberg, the fourth quarter is likely to be worst quarter of the year for the British fashion house as its shares dropped in January following a profit warning, and the company now needs to demonstrate progress with its brand elevation strategy under new chief creative officer 

Deborah Aitken, Bloomberg Intelligence expressed limited faith in Burberry’s ability to rejuvenate its brand in the next fiscal year. Adam Cochrane, Analyst, Deutsche Bank notes, while a tougher luxury market and evolving trends might be contributing to the company’s struggles, the reasons for Burberry's under-performance are not easily identifiable. According to him, the timing of Daniel Lee’s ‘big, bold new Burberry’ may have unfortunately coincided with a market shift towards ‘quiet luxury’ and a decline in aspirational luxury.

Burberry sales in China, a critical yet challenging market for the brand, are expected to drop by 17.5 per cent this quarter, the steepest decline among all regions. Deborah Aitken, Bloomsberg Intelligence anticipates, Chinese spending on luxury goods will recover later this year.