Burberry beats forecasts as China sales shine

British luxury group Burberry beat second-quarter revenue forecasts, helped by new stores and strong demand from China, and said it had not seen a slowdown in demand despite an uncertain economic outlook.

The 155-year-old maker of raincoats and leather goods, known for its camel, red and black check pattern, said on Wednesday revenue rose 29 per cent to £463M in the three months ended June.

That was little changed from 30 per cent growth in the first quarter and above an average forecast of 448 million pounds in a Reuters poll of 10 analysts.

Comparable store sales growth accelerated to 16 percent in the second quarter from 15 per cent in the first, led by demand in major cities including New York, London, Hong Kong and Dubai.

Sales in China were up about 30 per cent on the same basis, in line with the first quarter.

Burberry said it was sticking to its expansion plans, while adding it was ready to adjust should signs emerge of a significant slowdown in demand for luxury goods.

Burberry shares surged as much as eight times in value from the depths of the last recession in late 2008, driven by soaring demand for luxury goods from Asians, both in their own markets and as travellers.

But, after hitting a record high of 1,610 pence in July, the stock has pulled back sharply amid fears it could suffer from a slowdown in China's economic growth and that a sovereign debt crisis could plunge Europe back into recession.