Burberry Group PLC (LSE:BRBY) shares are up 2.6% at 2,167p supported by the better economic news from China – which is a big buyer of luxury goods – and ahead of the first show from its new chief designer on September 18.
Broker Stifel notes the "long-awaited" new Spring-Ssummer collections and products from Daniel Lee arrived in stores earlier this month, backed by increasing marketing intensity with the new show coming on Monday.
The broker thinks Burberry's marketing is more on point "in communicating its new brand aesthetics."
This includes new brand signifiers across products, the launch of its Burberry Streets initiative in London this week (soon to be followed by Seoul and Shanghai), a revamped website and a recently reopened Bond Street flagship store.
It reckons Burberry seems well-placed to narrow the sales momentum gap with sector leaders.
"Price architecture now appears to be in line with its targeted peers," it said, adding "and the brand fundamentals look more solid than they did five years ago."
It has a buy rating and 2,500p price target.