Troubled British fashion house Burberry on Thursday announced cost-cutting plans after posting a loss, with the global luxury sector pressured by weak Chinese demand. China is the world's biggest spender in the luxury sector, accounting for half of global sales.

Troubled British fashion house Burberry on Thursday announced cost-cutting plans after posting a loss, with the global luxury sector pressured by weak Chinese demand. China is the world's biggest spender in the luxury sector, accounting for half of global sales.

Shares in Burberry surged on Thursday as the luxury goods brand launched a review of the business in an “urgent” effort to turnaround its struggling fortunes after slumping to a £80m half-year loss driven by plunging sales in its key Chinese market.