Burberry Group Plc shares surged after a pickup in US demand boosted the trench-coat maker’s results, raising investor hopes for a luxury-market recovery.

Burberry’s sales over the festive period fell less than feared thanks to shoppers in the US. The British luxury brand, which is in the middle of a turnaround, reported a 4 per cent drop in quarterly comparable store sales on Friday,

British fashion house Burberry announced Friday a further decline in sales, hit by weak demand in China, but the troubled group is showing signs of recovery under new leadership.