European luxury stocks drop after China data, gloomy Swatch, Burberry releases
Adds China's Q2 GDP, updates shares
** Shares of Europeanluxury companies slip after data showed China's economy, a key market for the sector, grew muchslower than expected in Q2
** Separately,the world's biggest watchmaker Swatch Group UHR.S reports steep fall in first-half salesand earnings, British luxury group Burberry BRBY.L warns on profit
** Swatch and Burberry down 11% and 12%, respectively
** STOXX Europe Luxury 10 index .STXLUXP, which tracks top luxury goods makers, down about 2%
** J.P.Morgan saysSwatch is one of the companies within its coverage with the highest exposure to Greater China
** "We think the sector will likely come under pressure first thing this morning, and notably Richemont, the most obvious read-across" - JPM
** Brokerageadds Swatch's comments serve as a reminder of how tough trading in China remains and of the implications of operational deleverage, which the broker sees as particularly relevant for Burberry, Kering PRTP.PA and Ferragamo's SFER.MI turnaround stories
** Ferragamo falls 9%, whileGucci owner Kering slips around 4%
** Cartier owner Richemont CFR.S is down 3.5%, LVMH LVMH.PA 2% lower
Reporting by Anna Pruchnicka
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