By Paul Sandle and Pushkala Aripaka

LONDON (Reuters) -Burberry's sales fell by a less-than-expected 1% in the first quarter, as it benefited in the Americas and Europe from clearer brand positioning leaning on its British heritage, the luxury group said on Friday.

Shares in Burberry, which have more than doubled since September, rose 4% in early trade.

Known for its trench coats and check pattern scarves, Burberry is using its British heritage to win back customers under the leadership of CEO Josh Schulman, who took over exactly a year ago, and the company said its summer campaigns had broadened its appeal.

"Highgrove", inspired by the garden of the private residence of King Charles, resonated with luxury customers, Schulman said, while "Festival", based on music festivals like Glastonbury and featuring bucket hats and boots, targeted young customers.

Comparable sales returned to growth in Europe, the company said, while trading in the Americas strengthened. Sales fell in China and in the rest of Asia, but the rate of decline was around half that seen in the previous quarter.

"The improvement in our first-quarter comparable sales, strength in our core categories, and uptick in brand desirability give us conviction in the path ahead," Schulman said, adding that the autumn collection was being "well received".

Burberry said it was seeing reduced activity from tourists, but stronger demand from new and existing customers helped offset the impact.

"We are really pleased with the sequential improvement that we are seeing across the regions and particularly the shift to positive comps in America and EMEA," he told reporters.

"It's a tough macro out there and we're taking things step by step but we are optimistic about the quarters ahead."

Burberry, which has issued several profit warnings in recent years, is cutting a fifth of its global workforce, a radical cost-cutting measure that investors have welcomed.

The 1% drop in overall comparable retail sales in the first quarter, which ended on June 28, beat analysts' forecasts for a 3% decline in a company-compiled consensus, and improved on a 6% fall in the previous quarter.

Analysts at Citi said the brand had reported its third consecutive quarter of improvement since Schulman launched its new strategy last November, implying comparable sales could turn positive in the current quarter.

"In a quarter marked by further macro and geopolitical pressures and weaker tourist spending in Europe and Japan, Burberry has likely held up better than peers quarter-on-quarter," they said.

(Reporting by Pushkala Aripaka in Bengaluru and Helen Reid and Paul Sandle in London; Editing by Subhranshu Sahu, Susan Fenton, Elaine Hardcastle)

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