Burberry Group PLC (LSE:BRBY) surged on Friday after third-quarter figures appeared to put to rest jitters around the struggling luxury brand.
Though sales declined by 7% to £659 million, Deutsche Bank analysts noted the third quarter had been “much better than expected”.
Comparable sales fell by 4% against an expected 14%, the bank highlighted, adding Burberry now saw second-half trading offsetting the first’s adjusted losses.
“There is a base effect from easier comparable sales last year, but this is still a much stronger performance than expected in our view,” Deutsche said.
Burberry had joined Richemont, which trounced expectations last week, in painting a more positive picture for the luxury sector, Deutsche added.
“We need more detail on the amount driven by selling through old inventory and the ‘underlying’ brand momentum but outerwear and scarves have been called out.
“We like the increased brand heat and marketing campaigns.”
Shares jumped 14.9% to 1,229.50p.