Burberry reported its first increase in quarterly sales for nearly two years and a return to growth in China, as the British luxury goods retailer begins to reap the benefits of its “back to basics” approach, reports the Financial Times. The FTSE 100 company, famed for its check-patterned coats, said sales at stores that had been open for more than a year rose 2% in the three months to September 27, ahead of analysts’ expectations.
It added that like-for-like sales in greater China had also returned to growth, rising 3% in the same period, adding to evidence that a painful slowdown in one of the luxury industry’s key markets is easing.
Burberry shares jumped in morning trading before reversing course to fall 0.6% to £12.45, but have gained about 27% this year. Deutsche Bank analysts rate the stock as a “buy”, with a target price of £15.