LONDON (AP) — British luxury goods company Burberry Group PLC made a £5.1 million ($7.9 million) loss for the year after it heavily discounted products to maintain sales, wrote down the value of Spanish stores and bore the cost of moving its London and New York headquarters.

The net loss for the year to March 31 reported by Burberry, known for its distinctive beige plaid, compared with a net profit of £135.2 million a year ago.

Revenue was up 21 percent at £1.2 billion, exceeding £1 billion for the first time.

Chief executive officer Angela Ahrendts said that it "has been one of the most challenging years the luxury sector has ever faced, especially in the second half".

Burberry shares dropped 1.4 percent to 395.75 pence on the London Stock Exchange.

Luxury goods groups had proved relatively resilient in the early days of the economic slowdown, helped by demand from rising middle classes in emerging markets, but were hit harder as the crisis progressed.