Investing.com -- Burberry 's (LON:BRBY) third-quarter FY25 trading statement posted better-than-expected results, driving its shares more than 15% higher on Friday.
The British luxury fashion house reported a 4% decline in retail like-for-like sales, better than the expected 12% decline. This is an improvement from the 20% drop in the previous quarter.
Sales improved across all regions. In the Americas, sales increased by 4%, as compared to expectations of an 8% decline.
EMEA sales declined by 2%, better than the projected 5% decline. APAC sales contracted by 9%, better than the expected 19% drop.
Comparable store sales in Mainland China declined by 7%. However, sales within the broader Chinese consumer group, including tourists, exceeded domestic market performance.
The global sales recovery indicates a rebound in consumer demand and the positive impact of Schulman's focus on core products.
The company provided updated guidance for the second half, stating that earnings are expected to offset the £41 million EBIT loss incurred in the first half.
“We view these results as a first (and early) step in the right direction. Easy fixes relating to store layout and presentation, refocus on core product categories, and certainly contribution from markdown activity have all contributed to the improvement,” said analysts at RBC Capital Markets in a note.