July 16 (Reuters) - A profit alert from Hugo Boss and

weak China sales at Richemont added to evidence that Chinese

appetite for luxury goods may have peaked, knocking share prices

on Tuesday, while Porsche's exposure to the world's No. 2

economy also rattled investors.

China has been a major source of growth for the luxury

industry, with the market tripling in size between 2017 and 2021

and rebounding last year from pandemic lockdowns.

But that has changed as economic uncertainty has made

middle-class shoppers cautious, while those still rich enough to

afford luxury are wary of ostentation, analysts say.

Luxury share prices began this week's slide on Monday when

Britain's Burberry ( BBRYF ) sacked its CEO, warned on profit and

scrapped its dividend, sending its share price to the lowest in

more than a decade.

On Tuesday, it extended losses, falling more than 3%.

The company had already been the worst performer among

luxury stocks over the last five years and its share price has

shed around 50% since the start of the year.

Burberry ( BBRYF ) has been trying to reposition itself at the higher

end of the luxury market, which has been more resilient in the

face of reduced discretionary spending.

German fashion house Hugo Boss has also been on

an expansion drive. On Tuesday, it cut its sales and earnings

guidance for the year in response to weakening consumer demand,

especially in markets like China and the UK.

Its shares dropped more than 7%, making it one of the worst

performers on the pan-European STOXX.

Cartier-owner Richemont reported on Tuesday almost

flat sales in the three months to June, with a slump in Chinese

demand pushing the overall result slightly below expectations.

Sales dropped as much as 27% in China.

Its shares were also close to flat, up around 0.8% on the

day.

Even companies that have bucked the trend got caught in the

negativity.

Italy's Prada, listed in Hong Kong, closed down

2.5% after falling by as much as 5.6% earlier in the session.

Its first-quarter results, reported in April, had shown

still booming demand for its high fashion brand Miu Miu and

continued growth in Asia.

China's retreat from luxury extends to fast cars.

Shares in Porsche AG have lost more than a fifth over the

last three months, in part because of the group's weakness in

China, its most important market.

Earlier this month, Porsche said its first-half vehicle

deliveries fell, dragged lower by a 33% year-on-year drop in

China.

Investors' concerns about Chinese exposure increased on

Tuesday after former U.S. President Donald Trump picked Senator

J.D. Vance, known for his hardline stance on China, as his

running mate for November's presidential election.

Porsche's shares lost more than 5% on Tuesday

before paring losses slightly.