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Burberry boosted by weak pound but shares slump as Asian sales fall
Burberry returned to growth last quarter, helped by a £125m boost from the falling pound, but its shares slumped as much as 9 % as concerns about growth in key Asian markets spooked investors.
Many UK retailers have been hit by increased import costs as the pound has taken a battering but Burberry, which makes 80 % of its sales outside the the country, and incurs around 40 % of its costs here, has benefited.
The luxury fashion house has also seen a 30 % sales surge at its London stores as the weakened currency has given foreign tourists more money to spend.
“The Chinese are very much part of that, but all tourists are up in this quarter, the US as well,” chief financial officer Carol Fairweather said.