Burberry share price up after solid q1 results

Burberry (LON:BRBY) shares ticked up on Wednesday, after a solid set of results for the first quarter of 2017.

The luxury British retailer noted a strong start to the year, with like-for-like sales up by 4  percent. The company was boosted by a strong performance in the mid-China market, with sales up to the mid-teens.

The market update is the first since chief executive Christoper Bailey was replaced by his successor Marco Gobbetti.

Mr Gobbetti said: “We are pleased with our performance in the first quarter, while mindful of the work still to do.

“This is a time of great change for Burberry and the wider luxury industry. I look forward to building on the foundations Christopher and the team have put in place and creating new energy to drive growth.”

Sales for the quarter hit £478 million, driven by strong growth in the UK and Chinese markets.

In recent years, the luxury company has felt the pressure of fierce competition among high-fashion brands, having reported a fall in annual profits for the previous financial year.

As a consequence, Burberry is in the midst of a turnaround plan in which it plans to save at least £100 million by 2019.

Thus far, the company said it remains on track to deliver £50 million in savings by next year.

In the midst of the shake-up, previous CEO Christopher Bailey became President and Chief Creative Officer of the brand last month.

Mr Bailey had been chief executive of the British company, famed for its classic trench coat, since October 2013.

Bailey will now oversee product design, brand imagery and collections.

During early morning trading shares in Burberry ticked up as much as 5 percent. Shares are currently up 2.22 percent at 10.18 AM (GMT).