Marco Gobbetti takes over as Burberry boss

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Shares edged up 2.41% to 1,619p in morning trading. In China, sales growth was in the "mid-teens". The group's comparable sales meanwhile rose four percent, benefiting from strength in Mainland China which drove mid single-digit percentage growth in the Asia Pacific region.

"This is a time of great change for Burberry and the wider luxury industry".

Meanwhile, new chief executive Marco Gobbetti said that while the company is pleased with its first quarter performance, it is "mindful of the work still to do".

The company has announced plans to deliver at least £100m in cost savings by 2019 as part of a turnaround plan to be carried out by Mr Gobbetti, and Burberry added that it is on track to deliver £50m in savings in 2018.

Market consensus for the company's pre-tax profit was £456m before today's update.

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The company said in the retail division, it "will focus on productivity from its current store footprint therefore no material contribution from net new space is expected" in 2018. Excluding Beauty, underlying wholesale revenue in the first half of fiscal 2018 is still expected to be broadly unchanged year-on-year.

While the weak pound boosts sales for Burberry, it harms profit due to much of the retailer's products being sourced in United States dollars.

Burberry Group PLC on Wednesday reported growth in revenue in the first quarter of its financial year and said it now anticipates a lower foreign exchange hit to full-year profit than previously thought.

The fashion retailer started the 2017-18 year with a 4% increase in like-for-like sales. FY18 adjusted PBT at constant exchange rates is maintained.

Steve Clayton, fund manager of the Hargreaves Lansdown Select UK Growth Shares fund, said: "This is an encouraging performance from Burberry, which looks to be at long last pulling out of the doldrums".

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