Burberry shares surge on 'blockbuster' sales

Burberry delivered more "blockbuster" figures yesterday after demand for products such as "man bags" and children's trenchcoats helped it smash sales forecasts.

Shares jumped to a record high of 1,545p - before closing up 94p or 6.5 per cent at 1,531p - after the 155-year-old firm reported that retail sales rose 49 per cent in the three months to 30 June, with half of the growth coming from leather bags and raincoats as new lines flew off the shelves.

The company - famous for its red, black and camel tartan - said the new ranges in men's accessories, men's tailoring, shoes and children's wear had also boosted its wholesale division.

Burberry, which in March revealed it sold out of one style of ladies' trenchcoat the day after the Duchess of Cambridge wore it, saw total sales rise by 34 per cent to 367 million over the three months.

Katharine Wynne at Investec Securities described the first-quarter results as a "blockbuster performance", with underlying sales growth of 34 per cent against consensus expectations of 24 per cent growth.

The fashion house's emphasis on younger, luxury-focused customers and the high-end tourist market has partly insulated it from the rising raw material and other costs pressures that have hit retailers.

Burberry Prorsum and London, two of its key ranges, both pushed through double-digit average selling price increases over the past three months, it said.