British luxury fashion house Burberry Group reported 3 percent increase in retail sales in the first quarter, with Asia Pacific growing by a mid-single digit percentage, and the Americas up by a high single digit percentage.
However, sales in Europe, the Middle East and Africa declined slightly due to softer tourist demand in UK and Europe.
Due to exchange rates, the London-based fashion house said Chinese tourist spending has shifted from UK and Europe to Asian countries, particularly Hong Kong, Japan and Korea.
It also noted direct-to-customer growth was led by Asia Pacific and mobile is now the largest digital channel.
During the period, the company started a 150 million (HK$1.56 billion) share repurchase program.
For the quarter ended 30 June, retail revenue of Burberry amounted to 479 million, compared with 478 million a year ago.
Newly launched handbags, such as the Belt and D-ring performed well, according to the company, adding customers are responding to a "more complete wardrobe offer."
The collaboration with Vivienne Westwood of re-imagined iconic styles will launch in select stores in December.
The luxury global brand, founded in 1856, had showcased new handbags in Beijing, Dubai, New York and Seoul in pop-up stores.
It had 242 retail stores, 154 concessions, 52 outlets and 46 franchise stores worldwide as at the end of last month.
It has also been investing in key markets including relocating and expanding its flagship stores in Dubai and closing two outlets.
Burberry is to hold its annual general meeting today. Gerry Murphy will formally take over as chairman from John Peace after the meeting.