Britain's Burberry reported a 3 percent drop in like-for-like sales in a "challenging" first quarter, underlining the size of the task facing Marco Gobbetti when he takes over chief executive duties from Christopher Bailey next year.
The luxury goods group said a positive 3 percent contribution from new stores resulted in flat retail sales of 423 million pounds ($562 million), slightly better than analysts' expectations.
Burberry announced the appointment of Gobbetti, the Italian boss of LVMH brand Celine, on Monday. Bailey will become president as well as retaining his creative role.
The firm is struggling to counter a sales downturn in mainland China and Hong Kong and fewer tourists in Europe after attacks in Paris and Brussels.
However, it is benefiting from a drop in the value of the pound after Britain voted to leave the European Union last month, saying its adjusted profit would be boosted by about 90 million pounds if exchange rates remain at current level.