Burberry boosted by tourists flocking to UK and taking advantage of weak pound after Brexit

Luxury fashion brand Burberry posted better-than-expected sales after an "exceptional" performance in the UK, boosted by tourists hunting cheap deals following the slide in the pound after Brexit.

The British business said UK comparable sales jumped about 40% in the three months to the end of December, buoyed by domestic demand and "travelling luxury customers from all regions".

Sterling has fallen some 16% against the dollar and 11% against the euro since the UK's vote to leave the European Union in June.

Overall, it said group comparable sales lifted by 3%, as growth returned to its key Asian markets such as China. It added sales of handbags were particularly strong.

Analysts had expected comparable sales rise of about 2% across the group, known for its check-lined trenchcoats.

The FTSE 100 firm said retail revenue rose by 4% on an underlying basis to £735m ($905m) in its third quarter period. It added it is on track to meet full-year expectations.

Outgoing chief executive Christopher Bailey said the group had seen "strong demand for new products in our collections".

Earlier this week the group said Bailey's successor Marco Gobbetti, the former boss of French fashion house Céline, will start work next week and will take up his full responsibilities in July.