BUZZ-Luxury goods: unfashionable

** Gloomy updates from luxury brands Mulberry and Burberry leave the pair nursing sharp falls, adding pressure on a sector that remains out of favour.

** Small-cap handbag maker Mulberry drops 10 pct to near 2-month lows after warning on profits again, says trading conditions have deteriorated.

** Larger rival Burberry posted a 14 pct rise in first-half revenue, but also cautioned market conditions were becoming more difficult.

** Burberry sees wholesale rev down, seen as a negative. Shares (Berlin: DI6.BE - news) down 4.3 pct to 2-1/2 month lows.

** Burberry only stock to hold its valuation premium vs the market. Chart: http://link.reuters.com/fen23w

** Rivals weak: A 1.5 pct drop sees Cartier owner Richemont trade around 1-1/2 year lows, Louis Vuitton owner LVMH falls 1.6 pct to an 8-1/2 month low, while Gucci parent company Kering (Milan: KER.MI - news) , down 2 pct, hits six-month low. (RM (LSE: RM.L - news) : tricia.wright1.thomsonreuters.com@reuters.net)