UK luxury brand Burberry's share price has dropped this morning after it warned that its full-year profits will be at the "lower end of market expectations" following a slowdown in sales growth.

The company's share price was down 18.47% to GBP11.21 a share at 11:03 BST today (11 September).

The fall came after the company said sales growth was 6% during the 10 weeks to 8 September 2012, driven by new space. Comparable store sales were flat, with a deceleration in recent weeks.

"As we stated in July, the external environment is becoming more challenging," said CEO Angela Ahrendts.

"In this context, second quarter retail sales growth has slowed against historically high comparatives. Given this background, we are tightly managing discretionary costs and taking appropriate actions to protect short term profitability, while continuing to execute on our proven five key strategies."

Sam Hart, an analyst at Charles Stanley, said that while luxury goods remain a structural growth market, demand is being held back in the short term by the uncertain global macro-economic environment.

"The luxury goods sector is probably particularly vulnerable to any slowdown in demand from China, given that it has been a key driver of growth in recent years," said Hart.