Burberry shares rise after fashion group posts better sales
Shares in Burberry rose after the fashion house calmed worries about slowing demand in China by posting better-than-forecast results.
The company said in a trading update that demand in Asia for its more expensive items helped boost revenues 9% to £1.11bn in the last six months.
Burberry said European sales were flat, while sales in the US rose slightly.
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.
Burberry plans to open a net 10 stores and 10 concessions over the next year, focused on China and Latin America.
"Burberry has again pleased, making earlier challenges look temporary in nature," Hargreaves Lansdown analyst Keith Bowman said.
"Nonetheless, with the company's Asian bias increasing and the debate over Chinese economic growth still ongoing, room for caution appears to persist."