Burberry sales miss estimates despite menswear boost

Burberry shares fell by more than 5pc after sales rose less than expected despite a boost from men's clothing and price rises.

Retail sales grew to £280m from £245m in the first quarter .The fashion retailer, famous for its red, black and camel-coloured check design, opened six large stores in the "challenging" three months to June 30, as it looks to tourists and wealthy residents in major cities to drive profits.

In a trading update, Burberry revealed that total revenues rose to £408m in the quarter from £367m in the same period the year before. Analysts had expected sales of £416m.

Retail sales - which make up the majority of the group's revenues - grew to £280m from £245m, helped by the strong performance of its menswear range. Non-clothing items also sold well.

Burberry said there was a "further increase in average selling prices, driven by product innovation".

"With continued brand momentum, Burberry has delivered a robust first quarter," said Angela Ahrendts, chief executive. "Revenue was up 11pc against a more challenging external environment. Sales in retail, now about 70pc of the business, increased by 14pc, with initiatives to elevate brand equity balanced by improved store productivity and new space."