LONDON: Demand for coats and large leather bags helped Burberry top Christmas sales forecasts, though the British luxury brand said its incoming chief executive might have to cope with a hit to profit from a stronger sterling in the months ahead.

Shares in the 158-year-old firm known for its camel, red and black check pattern rose up to 7.1 percent as investors welcomed the strong sales in an industry jittery about volatile demand in China.

“We believe many markets are still under-penetrated for the brand,” HSBC analysts said of Burberry’s prospects.

The jury is out on whether sales growth in the luxury goods industry this year will match, drop or slightly outpace the 10 percent rise recorded last year at constant currencies.

Analysts at Bank of America Merrill Lynch and HSBC are forecasting a slight slowdown to 9 percent while others are expecting growth of 11 percent.

Finance chief Carol Fairweather said comparable store sales in Hong Kong, Macao were up by a “double-digit” percentage and had just returned to double-digit levels in mainland China during the period under review.

She said sales may have got a boost from local consumers buying in advance of the Chinese New Year, the timing of which played in favor of Burberry’s reporting period this year.

“We are pleased with our performance in China but there is no real change in the trend,” she told a conference call with journalists.

Burberry’s comments on the subject are closely monitored since it was one of the first major luxury brands to warn of a slowdown in China back in September 2012, sending tremors throughout the whole luxury industry.

Chief Executive Angela Ahrendts would step down in mid-2014 to take up a job at Apple.

She is due to hand over to long-term chief creative officer Christopher Bailey later this year who will have a dual role, although the firm named a chief design officer to assist him in his creative functions.

Bailey faces significant challenges when he takes over, including the planned integration of Japan into the group on expiry of an apparel license in 2015, as well as growing revenue in fragrance and beauty after the firm began directly operating that business last year.