LONDON (Reuters) - Luxury brand Burberry (L:BRBY) said on Thursday comparable store sales since the start of its third quarter had improved relative to the second, when they were dented by a slowdown in China and Hong Kong.
The firm, famous for its trench coats and cashmere scarves, also reported a better-than-expected 3 percent rise in first half underlying profit, helped by costs savings.
Last month Burberry missed first half sales growth forecasts and warned of an increasingly challenging environment for luxury goods, particularly in China and Hong Kong, hammering its shares to a near three-year low.
It made an adjusted pretax profit of 153 million pounds in the six months to Sept. 30, on flat revenue of 1.11 billion pounds.
The profit outcome was ahead of analysts' consensus forecast of 147 million pounds.
"This robust performance reflects decisive action as the external environment became more challenging in key markets over the period," said Christopher Bailey, Chief Creative and Chief Executive Officer.
He said the firm was "confident in our strongest-ever festive plans and emphasis on productivity and efficiency."
Burberry ended the half with net cash of 459 million pounds and is paying an interim dividend of 10.2 pence, up 5 percent.
The firm now expects no material benefit to retail/wholesale profit for the full 2015-16 year from currency moves, having previously guided to a 10 million pounds benefit.
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.
