British luxury goods brand Burberry said yesterday it expects a post-Brexit drop in the pound to boost its earnings.

The group incurs about 40 per cent of its costs in Britain, but makes only 10 per cent of its sales in its home market and more than half of those come from foreign tourists in London, analysts estimate.

It said its adjusted profit for the year would be boosted by about £90 million if exchange rates remain at current levels, compared with a previous forecast of £50 million.

Burberry's shares rose to 12-week highs after the group announced on Monday that creative director Christopher Bailey would step down as CEO next year to focus on being creative director.

The shares jumped another 5 per cent after the company’s trading statement yesterday to 1,268 pence. – (Reuters)