Burberry sales growth slows as demand drops

LONDON -- Luxury fashion house Burberry PLC, which issued a profit warning last month, says retail sales growth slowed in the second quarter as demand weakened in Britain and China.

The company said sales at stores open more than a year rose 1 percent in the three months to Sept. 30, compared with 6 percent in the previous quarter.

The news was not as bad as many had expected, however, and Burberry shares rose 8 percent in early trading to 1,085 pence.

Burberry warned in September that profits this year will be at the lower end of market expectations. The news from the company, which had prospered over the past few years despite a global financial slowdown, sent shares down 20 percent and shook confidence in the luxury goods sector.