LUXURY group Burberry expects full-year profits in the top half of analysts' forecasts, after a 21 per cent rise in first-half revenue boosted by strong sales of coats and leather goods in Asia and Europe.
Luxury goods firms have mostly enjoyed a strong 2010 so far as the world economy moved out of recession. But moves in many countries to rein in government borrowing, like higher taxes and spending cuts, have raised fears demand will slow again.
LVMH, the world's number one luxury group, reports third-quarter sales figures on Thursday.
Best known for its camel, red and black check pattern, Burberry weathered the recent economic downturn better than many rivals thanks to a quick response which saw it slash costs, jobs, stocks and ranges.
It has since stepped up investment, focussing on emerging markets, e-commerce and menswear, and is reaping the benefits.
Burberry's shares, which have periodically benefited from takeover speculation, have risen around 75 per cent this year, outperforming the STOXX 600 European household and personal goods sector .SXQP by about 45 percent.
Burberry said comparable store sales rose 8 per cent in the second quarter, down from 10 percent in the first, and that it expected a 25 per cent increase in selling space in the second half, with the bulk coming from stores it bought from its Chinese franchise partner.
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