Burberry shares fall on fears of China slowdown This is the latest sign that Burberry's stratospheric growth rates, fuelled by the burgeoning Chinese middle classes might be starting to calm down, along with other luxury goods makers. Ms Cartwright insisted the company's strategy and profits were on track. We have said we don't expect consensus forecasts to move. We think this is a robust performance in a more challenging macro environment. However, Bank of America Merrill Lynch, cut its earnings forecasts. In an note, it said: "Consensus expectations of a 15pc earnings per share growth for 2013 look demanding in our view considering the 11pc reported revenue growth achieved in the first quarter and management guidance of modest operating leverage. Against a challenging comparison basis throughout the year, the likelihood of retail like-for-likes accelerating materially in coming quarters is limited in our view in a challenging and volatile macroeconomic environment. The broker is cutting its profit forecasts for this year and next by 2pc and its target price from £16 to £14. Ms Cartwright said that the main reason for the slowdown in sales growth was because the company was following a strategy of taking its product range upmarket and more exclusive - part of what the company called a "clean up." The cheapest handbag in its Haymarket check pattern, for instance, is being moved from £225 to about £400m, and its cheapest trench coat from an Asian-made £600 number to a British-made £800 version. "It's about tuning up the luxury dial," said Ms Cartwright. However, the strategy has meant it has lost some customers, even if the average selling price has increased. She added that its menswear was still performing exceptionally well ahead of the opening of its menswear only store in London in September. Richard Hunter at Hargreaves Lansdown, said: "If set against yesterday's update from Marks and Spencer, for example, [Burberry's] numbers are in a different league, as are the prospects. However, the shares" valuation is quite full and the weight of expectation is heavy."