Shares in Burberry Group PLC (LSE:BRBY) edged higher on Tuesday, bucking weakness elsewhere in the luxury sector after Hugo Boss highlighted the challenges facing global fashion groups.
The German group warned that consumer sentiment remains weak worldwide.
Despite the downbeat backdrop, Boss managed to deliver a slightly better-than-expected quarterly operating profit, but this was thanks largely to cost-cutting rather than top-line growth.
Boss reported earnings before interest and tax up 15% to €81 million for the second quarter, a touch ahead of analyst forecasts, as efforts to rein in costs helped offset a stronger euro and softer sales.
Group revenue slipped 1% to €1 billion, broadly matching market expectations, as the company flagged continued pressure from currency headwinds.
Boss shares rose 3.3% on relief that the numbers could have been far worse, while Burberry was up 6.5p at 1,294p.