Luxury brands are feeling the effects of the economic downturn, with Burberry shares falling sharply

Shares in Burberry fell nearly 10% to 1,577.50 pounds today after publishing quarterly results that highlighted falling demand for luxury goods, inflationary pressures and a slowdown in China’s economy.

The company’s earnings report raised concerns about the impact of declining demand for luxury goods on current trading and the potential impact on full-year sales. Although Burberry remains optimistic about its medium- and long-term goals, it has acknowledged the current market difficulties. The results revealed a significant slowdown in sales growth in the first half of the year and warned that if weaker demand, particularly from China, continues, financial guidance for the full fiscal year may not be met, reports Reuters.