The dark days of January, when Burberry’s shares plunged after a disappointing trading statement, seem long forgotten.

Now all the talk regarding the luxury label is just how much of it Sarah Jessica Parker is wearing in the new Sex & The City film and the continued success Burberry is having through a push into handbags, shoes and luggage.

Despite a marked slowdown in like-for-like sales over the second half, Burberry still reported an 8 per cent growth rate for the 12 months to the end of March, the stuff its high street rivals can only dream of. Retail sales in the US continued to climb and Burberry’s wholesale business generated a 50 per cent revenue increase in emerging markets.

There are concerns going forward given the economic climate, which Burberry notes has become more challenging.

This year’s capex budget will almost double to £95 million as Burberry relocates its head office, builds new stores and continues to spend on the supply chain.

The group also today said that it was comfortable allowing net debt to climb to £100 million, an increase of nearly 60 per cent. These are small figures compared to the likes of Marks & Spencer but historically high for Burberry.

However, Burberry’s shares remain 25 per cent below their level in October, despite rumoured interest from Coach, the US luxury handbag maker. Burberry is also trading on a multiple of 14 times forecast 2009 earnings, below peers such as Hermes. Hold.

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