Burberry jolted as luxury spending declines

A sharp sales slowdown in Hong Kong and the Chinese mainland led Burberry Group Plc to miss sales growth forecasts on Thursday, and warn of an increasingly challenging environment for luxury goods sales.

Carol Fairweather, chief financial officer of the 159-year-old brand famous for British-made trench coats and cashmere scarves, highlighted increased Chinese and global stock market volatility, currency swings and concerns over slowing economic growth.

"We believe this affected the confidence of and thus demand from luxury consumers, and especially the Chinese customers in some of our key markets," Fairweather said.