Luxury retail brand Burberry produced stronger than expected results for its third quarter, with comparable store sales up 6%.
Chief executive Angela Ahrendts said in a statement that the underlying retail revenue growth of 13% was particularly helped with the run up to Christmas, as well as outwear, digital and mens all ourperforming.
"We expect the external global environment to remain challenging, but see continued opportunities to drive productivity in our existing business, while investing for growth in under-penetrated regions, product categories, channels and mediums," she said.
In September 2012, Burberry had been forced into making a profits warning, after a slowdown in Chinese sales hit its expectations. But by managing its predictions, Burberry is now on course to match and possibly beat its renewed expectations.
Nick Hood, business analyst for Company Watch told the Huffington Post UK there had been a notable shift by consumers to the higher end ranges, confirming that even in tough times, UK consumers and wealthy tourists will find money for exclusivity and quality.
"Burberry's financial position is strong, with substantial cash balances and working capital resources available to support continued international growth, despite the challenging global conditions in developed markets all retailers are facing," he added.
Charles Stanley analyst Sam Hart said in an investor note that key drivers for the sector are expected to remain - growing middle-class populations in emerging markets; a rising number of high net worth individuals; the
increasing spending power of working women; and a growing propensity to travel among emerging market populations.
"Burberry is well positioned to benefit from the trend, given its iconic brand and action being taken to leverage the franchise into new product areas," Hart added.
"We believe visibility on the outlook for global economic growth has improved in recent months and see potential for confidence amongst global luxury goods consumers to continue to slowly improve. Under such conditions, our expectation is for Burberry to deliver further healthy growth in earnings and dividends over the medium term."Suggest a correction