But shares in the fashion house jumped 7% in early trading after it revealed stronger sales in other markets.

 

Total underlying¹ revenues in the six months to September rose 8% to £883m versus² a year ago, the firm said, despite the sales slowdown in China and also in its UK home market.

 

Burberry also announced that it would bring its perfume and beauty products business in-house.

 

The move means that the firm will take back control from April next year of the global sourcing, logistics and distribution of the products from licencee Interparfums.

 

In early September, Burberry shares slumped⁴ 19% after the company issued a surprise profit warning related to the downturn in China.

 

The poor performance is in large part due to an unexpected weakening of the Chinese economy.

 

The share-price rebound on Thursday morning was further encouraged by comments from chief executive Angela Ahrendts that sales in China had slowed from the "teens" three months ago to a rate that was still "marginally positive" in the most recent quarter.

 

She added that she "can't draw the conclusion" that the annual sales growth figure would go negative in the coming three months.

 

Despite the bounce, shares still remain more than 20% below the level they were trading at before the profits warning was issued.

 

Worldwide sales in the last three months at comparable stores open at least one year rose 1%, the firm said, compared with a 6% rate in the previous three months.

 

Business in Hong Kong, Germany and France remained robust⁵, Burberry said.

 

"In a more challenging external environment, footfall declined but brand momentum⁶ remained strong, particularly with our higher spending luxury consumer," said Ms Ahrendts.

 

New men's tailoring and men's accessories performed particularly strongly.

 

The retailer⁷ said it continued to expand its presence, with a 14% increase in floorspace planned. In the last six months Burberry opened 13 new mainline stores, including in Milan, Rome, Hong Kong and London's Regent Street.