Shares in fashion brand Burberry sunk over 4 percent on Wednesday, after launching a £150 million share buyback programme and reporting a rise in revenue.
Sales rose 3 percent in the quarter to June, hitting £479 million, up from £478 million in the same period last year the same period a year ago.
Softer demand from tourists was offset by a growth in sales from local and ‘top’ customers, according to the company, with performance in the Middle East hindered by ongoing stability.
Sales growth in Americas grew by a high single digit percentage amid positive footfall in the US.
Burberry confirmed its Farfetch collaboration was performing ahead of expectations. The fashion brand’s chief creative director Riccardo Tisci is slated to debut his collection in September.
The company is eight months into a strategic plan orchestrated by CEO Marco Gobbetti to boost its upmarket presence and increase its production of leather goods, where it has traditionally lagged behind. It has recently taken over one of its leather goods suppliers in Italy to fulfill that objective.
Burberry maintained its guidance at constant currency for fiscal 2019 and said it remained on track to deliver cost savings of £100 million.
Shares in Burberry (LON:BRBY) fell 4.09 percent to 2,015.00 (0848GMT).