Burberry delivered stronger-than-expected first-quarter trading, with comparable retail sales rising 5% year-on-year and retail revenue increasing 5% to £455m, but the Middle East dragged down the numbers.

The Americas led regional growth with sales up 12%, while Greater China climbed 9% and Asia Pacific rose 3%. However, Europe, Middle East, India and Africa (EMEIA) sales fell 3% as reduced tourist spending linked to the Middle East conflict offset stronger performances elsewhere.

The luxury fashion house also raised its first-half wholesale guidance as outerwear continued to outperform, women's handbags returned to growth and e-commerce increased by a mid-teens percentage.

The performance was the first time in three years that all major product categories returned to growth, with outerwear delivering another standout performance, women's handbags returning to growth, e-commerce rising by a mid-teens percentage and the company raising its first-half wholesale guidance.

CEO Joshua Schulman said: "For the first time in three years, we saw growth across our Womenswear, Menswear, Accessories and Childrenswear divisions, anchored by the outperformance of Outerwear. Our strategy is working."

Despite the upbeat trading update, Burberry shares fell more than 6% in early trading as investors focused on weaker demand in Europe and the Middle East and the potential impact of geopolitical tensions on luxury spending.

Burberry maintained its full-year outlook, expecting revenue growth and margin expansion in line with expectations despite ongoing geopolitical and macroeconomic uncertainty.

Susannah Streeter, chief investment strategist at the Wealth Club labelled the results a "chequered update".

Streeter said: "Even though the turnaround strategy under CEO Joshua Schulman is showing signs of progress, the results show that the luxury market is far from immune to the forces swirling around the global economy."

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