Revenue rose three percent to pound665 million ($893 million) in the company's third quarter, covering the three months to late December, from the period a year earlier, Burberry said in a statement.

Comparable sales in China, a key market for luxury brands, jumped six percent, with Burberry flagging strong growth in Gen Z customers in the region.

Burberry launched a turnaround plan at the end of 2024 aiming to boost sales and cut costs as the global luxury sector has suffered from weak demand in China.

"The impact of our initiatives continues to build, giving us increased confidence in the direction of the business," the company said in Wednesday's trading update.

Shares jumped more than five percent in morning deals on London's top-tier FTSE 100 index, which was trading flat overall.

Under chief executive Joshua Schulman, Burberry has refocused on its staple outerwear, including its famed trench coats, in a bid to improve its fortunes.

Schulman was appointed to the role in July 2024 after former CEO Jonathan Akeroyd left the group following weak results blamed also on poor strategy.

"After a recently chequered past, the Burberry brand is regaining momentum," said Richard Hunter, head of markets at Interactive Investor.

"Growth in Gen Z customers... not only is a vindication of the new Burberry Forward strategy but is also a promising sign of the brand remaining relevant to a younger generation," he added.

China is the world's biggest spender in the luxury sector, accounting for half of global sales.

But as the country's post-pandemic recovery falters, consumption has flagged, sending jitters across the globe.

"This Burberry print should provide some relief for the luxury sector given the sequential improvement in Greater China," noted Deutsche Bank analysts.

Burberry launched a cost-saving programme in November 2024 and hopes to save pound80 million in its financial year, including via job losses.

Thanks to cost-cutting, Burberry narrowed losses in its first half.