Train favourite Burberry falls 12% on poor China sales

Luxury firm hit by economic slowdown

Burberry Group is down 12% this morning, after first-half results revealed disappointing sales growth in China.

Underlying retail sales were up 2% to £774m, undershooting analysts' forecasts of a 8% rise. Revenue for the six months to 30 September was £1.1bn, unchanged year-on-year.  The fall in the share price is a major hit to the funds holding the stock, most notably Lindsell Train's £1.6bn UK Equity fund, which has 5.1% in the company. Other funds holding the stock include the $103m Franklin Global Growth fund and Tineke Frikkee's £47m Smith & Williamson UK Equity Income fund. The company's shares suffered as China is a major market for its products, but the slowing economy means it is a...