When investors are feeling bullish about life, they consider Burberry a luxury goods company. That is one reason it has offered a total return of 125 per cent over the past five years, more than twice as much as rivals such as Tod’s or LVMH. When they are feeling bad – as they were on Wednesday – they consider it a retail chain. Shares of the fashion group fell 7 per cent despite what appeared to be another impressive three months (April to June) of sales growth. Considering that Britain’s miserable summer looks tailor-made for Burberry’s raincoats, that seems odd. In fact, it fits a recent trend.

There is nothing fundamentally wrong at the group. It has 500 stores (a mix of wholly owned, concessions, outlets and franchises) in all the right places: four stores in Brazil, for example. It is planning for 100 in China in the medium term, with three flagship stores in Shanghai. In the April to June period, Burberry reported strong growth in the UK, Germany, France and China. Group underlying sales growth was 11 per cent, bringing total revenue in the three months to ￡410m; growth on the retail side, which accounts for two-thirds of Burberry’s revenue, was even stronger at 14 per cent.

The company’s continued focus on growth still looks justifiable, whatever the jitters about the global economy. Annual sales growth at its wholly owned Chinese stores is about 20 per cent, though the picture is more mixed in the US, where Burberry has been moving up market since 2006.