LONDON (AP) — Burberry is warning that its earnings this fiscal year are likely to be at the low end of market expectations as the luxury goods maker concedes that it faces "challenging" conditions and declining sales in Hong Kong.

Burberry's downbeat outlook for the year to next March came as the company said sales for the second half of its last fiscal year dipped 1 percent to 1.41 billion pounds ($2 billion).

Burberry's share price sank 7 percent in early London trading.

Burberry says it is working on plans to boost its revenues and will publish its assessment alongside its full-year earnings.

Luxury goods makers are experiencing tough conditions because of the slowdown in the global economy and anti-corruption laws in China that have curtailed the gift-giving that once buoyed the market.