Burberry boss relief at China-led sales jump
Burberry boss Christopher Bailey has hailed a 12% sales increase for the luxury brand a day before an annual general meeting which is likely to see him come under pressure over pay.
The rise was helped by double-digit growth in China, eclipsing the performance in Europe and other regions, but the group warned that the strength of the pound could have a deepening impact on its bottom line.
Shares rose 2% on the update but Mr Bailey, who recently took on the role of chief executive in addition to being chief creative officer, is widely expected to face investor disquiet over his multi-million pound pay package at today's AGM.
Burberry said retail revenue for the first quarter to the end of June was up 17% to £370m, including 12% from existing stores.
Declining footfall in its high street stores was offset by online traffic and a strong response to its collect-in-store services. But with the pound at near six-year highs against the US dollar, Burberry said exchange rates at current levels would have a material impact on annual earnings.