'˜Exceptional' UK performance helps Burberry's sales rise

The company, known for its trenchcoats, is seeing increased demand from tourists in London who are taking advantage of the drop in the value of the pound since Britain voted to leave the European Union in June.

It said it had seen growth from both travelling luxury customers from all regions and from domestic customers in Britain in the quarter.

The company also said it saw sales accelerate in mainland China and an improvement in Hong Kong, although comparable sales continued to decline.

Chief creative and chief executive Christopher Bailey said the group had seen “strong demand for new products” in its collections.

“With a record number of views of our festive film and strong demand for new products in our collections, this third quarter improvement reflects early progress from our plans to drive Burberry’s performance for the long term,” he said. “We continue to take action to position the business for growth over time and our plans to enhance efficiency are on track.”

Mr Bailey’s successor as chief executive Marco Gobbetti will start work next week and will take on full responsibilities in July, Burberry said on Monday.

Halifax-born Christopher Bailey will continue as chief creative officer and CEO until July 4.

Then he will take up the new role of president and chief creative officer on July 5 and will remain on the board. Burberry said that Mr Bailey will continue to report to the chairman.

The firm, which reportedly received an approach from US rival Coach last year, said its retail revenue increased by 4 per cent on an underlying basis to £735m in the three months to end-December.

Analysts had expected comparable sales to rise by about 2 per cent.

In November Burberry reaffirmed its commitment to create a new state-of-the-art factory in Yorkshire despite a 24 per cent slump in its half-year profits.

Burberry is to create a multi-million pound manufacturing and weaving facility in Leeds’s South Bank to produce its popular trench coat range, relocating its existing staff in Castleford and Keighley to the new site.

The company is spending over £50m on the new facility, situated on the South Bank of Leeds, which will employ more than 1,000 people when it is completed.