Burberry Plc (BURBY) posted stronger-than-expected sales in its fiscal first quarter as growth in China and its domestic U.K. market offset slowing North American revenue.
The luxury goods maker said retail revenue grew 3% on an underlying basis to £478 million ($613 million) compared to analysts' forecasts of a 2.5% advance, with comparable sales rising by a better-than-expected 4%. Burberry said sales in the Asia Pacific region grew by a "mid single-digit percentage" while continued U.K. strength offset weakness in Italy to deliver "high single-digit percentage growth" in the European region. North American sales growth was in the "low" single digit range, Burberry said, thanks to reduced domestic demand.
"I am delighted to have started as Burberry CEO," said Marco Gobbetti. "We are pleased with our performance in the first quarter, while mindful of the work still to do. This is a time of great change for Burberry and the wider luxury industry. I look forward to building on the foundations Christopher (Bailey) and the team have put in place and creating new energy to drive growth."
The sales figures fall just 24 hours ahead of what could be a contentious annual general meeting during which the group's executive pay plans -- including a £5.4 million award to outgoing CEO Bailey -- are expected to be challenged by some of its biggest shareholders.
Burberry shares surged more than 5% in the opening minutes of trading in London to change hands at 1,659 pence each, trimming their three-month decline to around 1.7%.
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