Burberry sales clipped by Hong Kong protests

burberry cara delevingne
Models Suki Waterhouse and Cara Delevingne pose outside a Burberry store in Shanghai.

Cara Delevingne wasn't enough to save Burberry from taking a sales hit in Asia last year.

Luxury retailer Burberry (BURBY) said sales in the final quarter of 2014 were hit by the disruption in Hong Kong following long-running protests in the city. Pro-democracy activists camped out near the main business district for more than two months, frustrating nearby retail and business operations.

Hong Kong is a lucrative market for the British brand, whose iconic trench coats start at £995 ($1,508). It accounts for about 10% of Burberry's global trade.

A number of high-profile British models pose for the brand, including Delevingne and Kate Moss. Romeo Beckham -- son of Victoria and David -- starred in a Christmas campaign.

Related: Britain's factories are back in fashion

Still, weakness in Hong Kong wasn't enough to dampen an otherwise strong quarter for the luxury brand. Retail revenues climbed 14% during the quarter to £604 million ($912.3 million). Sales were strong across America and Europe, as well as Korea and China.

High-end labels face rising headwinds in China, the world's biggest luxury market, as slowing growth and crackdown on corruption slugs spending.

Government representatives in China have been told to stop holding extravagant banquets, riding in showy cars and giving or accepting luxury gifts.

And for the first time, spending trends in China slipped into negative territory. Luxury spending in the country fell 1%, according to management consultants Bain & Co., following greater controls on spending and changing consumer patterns.

"China is flattening while South Korea strengthened its position as a trendsetter and influencer for fashion and luxury," report author Claudia D'Arpizio wrote.

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