Burberry profits plunged as Chinese consumers turned away from the luxury retail industry at the start of this year.

The British fashion brand warned it expects the first half of its current financial year to “remain challenging” after a drop off in demand.

Sales in its important Asia Pacific region were down 17pc in its financial fourth quarter, while its number of Chinese customers was down 12pc compared to the same period a year earlier.

As many retailers complain about the impact of the tourism tax on the sector - in which overseas shoppers are charged VAT - Burberry added that tourism accounted for almost a quarter of sales from Chinese customers globally.

In the year to the end of March, its operating profit dropped by 36pc to £418m.

Chief executive Jonathan Akeroyd said: “Executing our plan against a backdrop of slowing luxury demand has been challenging. 

“While our FY24 financial results underperformed our original expectations, we have made good progress refocusing our brand image, evolving our product and strengthening distribution while delivering operational improvements. 

“We are using what we have learned over the past year to finetune our approach, while adapting to the external environment.”

Read the latest updates below.