The UK-headquartered luxury fashion retailer warned that full-year operating profit at the lower end of forecasts amid a global slowdown in luxury spending and said that it may miss its annual revenue projections for low double-digit growth.

In its second quarter earnings results, Burberry reported that comparable store sales growth slowed to just 1%, down from 18% in the previous quarter, citing a slowdown in the Chinese market as a major factor.

The company recorded half-year operating profit of £223 million (US$276.64 million), down 15% from last year, but CEO Jonathan Akeroyd said Burberry was making “good progress” on its strategic aims. Leather goods and footwear both remain key market segments where the company is looking for future growth.

“While the macroeconomic environment has become more challenging recently, we are confident in our strategy to realise our potential as the modern British luxury brand, and we remain committed to achieving our medium and long-term targets,” Akeroyd said.