British luxury brand Burberry Group's sales fell as it suffered from a new wave of lockdowns at the end of last year, but Asia Pacific was a bright spot.

Comparable retail sales were down by 9 percent in the three months through December. Analysts had expected an 8 percent drop.

Retail revenue dropped to £688 million from the year before.

Burberry shares gained by 3.2 percent in early London trading, though they are down by 22 percent over the past 12 months. Analysts at Morgan Stanley cited gains in full-price sales as the company moves to contain discounting and elevate its image.

Chief Executive, Marco Gobbetti, said Burberry had a “strong increase in full-price sales as our collections and communication resonated well with new, younger clientele as well as existing customers. Our localised plans and digital capabilities helped drive growth in rebounding markets and we implemented our planned reduction in markdown. While the short-term outlook remains uncertain due to the coronavirus, we are well placed to accelerate when the pandemic eases.”

Burberry’s performance was mixed geographically: the appetite of shoppers in Asia Pacific was strong with 11 percent growth, but Europe, the Middle East, India and Africa reported a 37 percent deceleration. The Americas also saw an 8 percent revenue decline, according to a statement Wednesday.

Mainland China reorded strong double-digit growth (similar to second quarter in financial year 2021) in a quarter that has a higher percentage of local sales compared with the first half, Burberry said.

Digital full-price sales grew by more than 50 percent, with mainland China in triple digits, Burberry said.

The company said 15 percent of its stores are currently closed, with more than one-third operating on reduced hours.

Burberry warned of “headwinds” for the current quarter.-Bloomberg/The Standard

Burberry posts double-digit growth in mainland China