First quarter sales cheer for new Burberry chief

The company reported a 3 per cent increase in retail sales to £478m in the three months to June 30, while like-for-like sales rose 4 per cent in the first set of results under Mr Gobbetti.

Revenue was driven by strong performances in mainland China and in the UK, where the weaker pound has lifted sales, although Burberry said it saw a “deceleration” of this trend towards the end of the quarter.

Mr Gobbetti said: “I am delighted to have started as Burberry CEO. 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.”

Mr Bailey stepped down as chief executive earlier this month, becoming president and chief creative officer as part of an overhaul.

The company has announced plans to deliver at least £100m in cost savings by 2019 as part of a turnaround plan to be carried out by Mr Gobbetti, and Burberry added that it is on track to deliver £50m in savings in 2018.

The firm said that its guidance for full year profit is unchanged.