British luxury clothing and accessories group Burberry on Thursday said group sales growth slowed during its second quarter but the business update nevertheless reassured the market after a recent profits warning.

Burberry added that it would bring its perfume business totally in-house following the end of a licence relationship with French company Interparfums early next year.

Burberry said sales grew by 3 percent during its second quarter, or three months ending September 30, to 475 million pounds ($760 million), which compared with 11 percent growth in the group's first quarter.

Despite the slowdown, dealers welcomed the data, sending shares in Burberry to the top of London's FTSE 100 index as they recorded a gain of 6.10 percent to 1,064.2 pence ($ 17.06) in early trading Thursday.

Seymour Pierce financial group said in a note to clients they were "reassured that demand has not fallen off a cliff and so believe the shares have been oversold" in recent weeks.

One month ago, Burberry shares tumbled by a fifth in just one day and had failed to recover prior to Thursday's update after the British firm issued a surprise profits warning which analysts blamed on China's economic slowdown.

The company had previously bucked the gloomy trend in the wider retail sector.

The group has in recent years been at the forefront of a global surge in demand for luxury goods, bolstered by soaring sales in China but the Asian powerhouse economy is now undergoing a slowdown.

"Burberry's exposure to China in the recent past has been something of a double edged sword given that country's slowing economic growth, whilst the equally important American and European regions provide further economic hurdles," Richard Hunter, head of equities at Hargreaves Lansdown Stockbrokers, said on Thursday.

Burberry meanwhile added that it would begin direct operation of its perfume and beauty products from April 2013.

"In order to capitalize on the significant opportunities available for the brand in fragrance and beauty, Burberry announces that it will directly operate these product categories following the end of its existing licence relationship with Interparfums," the company said.

The company noted its licence relationship with Interparfums would extend until the end of March to facilitate the switch-over.

AFP