In October, Burberry had also warned of an increasingly hard environment for high-end goods in Hong Kong and China.
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Chief executive Christopher Bailey, who was born in Halifax, said “decisive action” helped underlying pre-tax profits rise by three per cent to £153m in the six months to September 30, against market forecasts for a fall.
Shares in Burberry, down a quarter over the last six months, closed Wednesday at 1,335 pence, valuing the business at 5.9 billion pounds.
Burberry a luxury brand from United Kingdom, reported signs of improvement in its China and Hong Kong stores.
Richard Hunter, the head of equities at Hargreaves Lansdown Stockbrokers, said: “Given a disappointing trading update last month, expectations were low for these numbers but Burberry seems to have pulled the rabbit out of the hat”.
Luxury-goods makers are seeking to combat a slump in Asia as fewer wealthy Chinese buy expensive coats and bags in Hong Kong following protests there and a clampdown on extravagance back home.
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“We are committed to being in Hong Kong”, Fairweather said. She said Burberry has never been better prepared for the festive season, covering Christmas and Chinese New Year celebrations. Burberry shares have fallen 18 percent this year, compared with a 4.1 percent decline for Britain’s benchmark FTSE 100 Index. Comparable sales have improved in the third quarter compared with the second, and the company isn’t changing its outlook for mid single-digit percentage growth in comparable sales in the second half. Achieved on flat total revenue of STG1.11 billion pounds, the profit outcome reflected STG20 million pounds of cost savings, such as on staff recruitment and travel.
