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Q3 sales down 4% vs expected 12% decline

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Sales rise in Americas, decline in Asia Pacific and China

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Company says more likely to make annual profit now

(Adds festive campaigns, CEO details, quote)

By Helen Reid and Yadarisa Shabong

Jan 24 (Reuters) - British luxury brand Burberry

reported a smaller than expected 4% drop in quarterly

comparable store sales on Friday, helped by stronger holiday

season demand in the United States, an encouraging step in the

company's turnaround.

CEO Joshua Schulman, who took over at the struggling brand

six months ago, said Burberry's ( BBRYF ) festive advertising campaigns,

which highlighted its trademark trench coats and scarves more

than bags and shoes, resonated with a broad range of customers.

Schulman's strategy is to put the focus on Burberry's ( BBRYF )

best-known products to win back customers he said were alienated

by less recognisable designs and higher prices.

"While we recognise we are still early in our

transformation, we are encouraged by the response from customers

and partners over the festive period," the company said in a

statement.

Third-quarter sales in the Americas rose 4% and Burberry ( BBRYF )

said New York, where the brand opened a refurbished store on

57th Street, performed well. Asia Pacific continued to lag, with

sales down 9% and mainland China down 7%.

Analysts had expected a 12% decline in comparable sales for

the company's third quarter to end-December.

Burberry ( BBRYF ) said it was now more likely that it would make a

profit over its financial year, expecting to offset the adjusted

operating loss of 41 million pounds ($51 million) it reported in

the first half.

($1 = 0.8074 pounds)