luxury brands lose their luster in China

The Chinese consumer was a little disappointing for luxury brands. This week saw both British label Burberry and Chow Tai Fook, the traders in Hong Kong-based jewelery, their shares hammered after the announcement of disappointing growth in the Chinese mainland. The second-largest economy saw GDP growth of 7.6% slide in the second quarter from 8.1% in the first quarter. More News From Reuters Michael Kors triple profits in the fourth quarter Paul Smith offers relocation costs in China Buyer tourist pose riddles sales Graff Diamonds sparkle Chow Tai Fook added luxury of gloom Same-store sales growth in the country for both companies was still in double digit territory in the three months to 30 June, but no longer uses the investors to see great growth potential in China's demand for everything from trench coats to throw Winnie the Pooh figures made of solid gold. Burberry declined by 10% released within two days after its first quarter results on Wednesday were. Chow Tai Fook has lost 11% after the results were announced the same day. The Director General of the Hong Kong company called the slowdown, growth "at a normal pace" After one year store growth for the entire group was 40%. It was the same tone of casino operators in Macau, which was the main reason for the slowing sales growth 30-40% over the previous year in 2011 to 7% in May, the "base effect" has to say. Investors seem to judge skeptical of the last paragraph. But analysts say that some stocks have been oversold, especially in the upper end of the luxury market as the 1.5 million dollar millionaires in China is less likely to fight their spending habits that wealthy candidate, they say. Millionaires are also more likely to buy in Europe today for their handbags, now that the euro is down almost 20% against the yuan in a year.