Burberry's warning could signal a retrenchment for luxury firms as Chinese growth slows. However, reliance on China is just one of a number of factors. Weakness in the Eurozone remains influential. The Olympics may have also subdued traditional retail tourist footfall in August. With sales growth of 6%, despite flat same-store sales, the current profit warning is not disastrous. The fall in share prices reflects cautious investor sentiment, although this could become more telling if sales continue to underperform. Eyes remain firmly fixed on China to gauge whether slowing growth will undermine the ambitious expansion undertaken there by luxury brands in recent years.
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