This week the luxury retailer announced a 27 per cent increase in revenue to £1.5bn overall, prompting The Share Centre to upgrade the company from a "sell" to a "hold".
Burberry appears in the top-10 holdings of 12 open-ended funds, the majority of which sit in the IMA UK All Companies sector.
With the exception of the £586m F&C Stewardship Growth fund, all of the UK All Companies funds have outperformed their sector average over a three-year period.
Nick Train’s £267m CF Lindsell Train UK Equity fund tops the list, with returns of 51.58 per cent over three years, making it the fifth-best performing fund in the entire sector over this period.
The company is one of Train’s biggest holdings, making up 6 per cent of the portfolio.
Giles Hargreave’s Marlborough UK Leading Companies fund also has a significant weighting to Burberry. The fund has returned in excess of 42 per cent in the last 12 months – the fourth highest in the sector overall.
Aviva Investments UK Special Situations, Barclays UK Opportunities, L&G UK Special Situations, Scottish Widows HIFML UK Focus and SVM UK Growth also hold Burberry in their top-10.
According to Financial Express data, Burberry has returned 185.74 per cent in the last three years. Since its lowest point in November 2008, the stock has returned in excess of 700 per cent.
Performance of stock over 3-yrs
Source: Financial Express Analytics
Burberry also appears in the top-10 holdings of two investment trusts – Schroder UK Growth and SVM UK Active. SVM UK Active returned 45.15 per cent to investors in the last year – making it the third-highest performer in its IT UK Growth sector.
Nick Raynor, investment adviser at The Share Centre, says he expects Burberry to keep up this performance as long as demand from developing economies stays strong.
"These profits were largely driven by growth in emerging markets – particularly China, where it has added 50 franchise stores since July 2010," he said.
"Profits were also helped by better management of its stock as Burberry sold fewer items at sale prices."
"We are still cautious of the retailer's performance in previously traditional markets, such as the UK, Spain and Europe – however, growth in emerging markets shows no sign of slowing down and we believe it will continue to profit from these regions for another 12 to 18 months."
Though Raynor is optimistic, he says the company’s plan to spend more on store openings in the first half of 2011 could have an adverse impact on figures in the short-term.