Burberry is the latest upmarket brand to suffer from the sudden downturn in luxury spending, as it admitted today that the economic climate was hitting sales.

The group, famed for its check pattern, said trading had worsened since the end of September, particularly in the United States.

Bulgari, Richemont and Hermes reported slowing sales for October and this month, while other luxury goods makers have warned investors of a tough Christmas ahead. The warnings came thick and fast after months of untroubled performance, despite the credit crisis.

Burberry said spending at its shops, which accounted for 45 per cent of revenue for the six months to September 30, was down by a “mid single-digit percentage” in October and November, while lower-margin wholesale trading was down “mid to high single-digit percentage”.

Angela Ahrendts, the chief executive, said Burberry remained in a strong position despite the "very challenging environment".

"I feel Burberry is better positioned to weather the storm than most global luxury brands today", she said.

It also said it was shippin gup to a third of its goods by sea, instead of air. The switch means the cost of transporting a handbag falls from £7 to 70p, and was made possible by an investment in supply chain software.

"We're 75 per cent of the way through the most significant investment in the luxury business - in supply chain, in IT and in the infrastructure. We're all in position to start realising the benefits", Ms Ahrendts said.

The company has identified cost savings of up to £20 million for 2009 and 2010.

In the first half of the year, Burberry opened a net five stores as well as securing more space within department stores. Overall, its retail floor space rose 13 per cent.

Shares in the FTSE 250 company dived 18p, or 9 per cent, to 182.25p this morning.

Total revenue rose 20 per cent to £539 million for the six months to September 30, while pre-tax profit rose 1 per cent to £97 million.

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