Almost 20 percent of Burberry sales come from the United States. The company noted "geopolitical developments" in deciding not to release specific targets for the full year in the earnings release. "The tariff turmoil has increased worries," a managing partner at advisory firm Ortelli & Co., Mario Ortelli, tells Reuters. "This is not helping the sentiment of the luxury consumer." Burberry's turnaround efforts come as the entire industry is seeing a shrinking consumer base. Rivals LVMH, which owns Louis Vuitton, and Gucci owner Kering have also recently reported earnings declines, with both American and Chinese markets remaining weak. A McKinsey study says the industry's rapid expansion over the past five years has led to "overexposure and has weakened the industry's promise of exclusivity, creativity, and craftsmanship." It claims consumers are questioning the luxury promise of uncompromising product quality and personalized, white-glove service.