Burberry Group showed further signs of stability as demand for its highest-priced products, especially in China, gave the fashion company a revenue lift.
Burberry, a British company, increased its revenue to £1.12bn for the six months ended March 31, a 9% climb overall and a 7% increase for sales at stores open more than a year.
Growth was strongest in the Asian-Pacific region, especially China, where consumers favoured higher-priced Burberry items such as trench coats and leather bags. The news pushed Burberry shares up as much as 8%, and the stock was trading 3.5% better around midday.
Worries over slowing demand for luxury goods were heightened by a profits warning last month from handbag maker Mulberry. Burberry, famous for its red, black and camel check, itself worried investors by warning of a slowdown last September.
Angela Ahrendts, the company’s chief executive, said she expected the global economic environment to remain challenging but said Burberry was aiming to make the most of “significant opportunities that exist for the brand across geographies and product divisions, with particular emphasis on unlocking the potential of our digital platform and our newly-integrated fragrance and beauty business”.
Burberry plans to open a net 10 stores and 10 concessions over the next year, focused on China and Latin America.
