Hopes are growing that the worst may be over for the global fashion industry after a string of better-than-expected results.

Polo Ralph Lauren, the preppy clothing brand, and Benetton, the colourful knitwear chain, yesterday became the latest to say the downturn was now hurting less than feared.

Shares in Polo Ralph Lauren surged to a 10-month high in New York after the company smashed forecasts thanks to market share gains.

Meanwhile, Benetton posted a 11.4% drop in sales after postponing shipments, but the Italian retailer said it was “upbeat” about prospects for the rest of the year.

This follows last week's results from Gucci Group owner PPR and LVMH, the world's biggest luxury goods group, which likewise beat expectations.

Fashion retailers and manufacturers have been among the hardest hit as shoppers cut back on frivolous purchases. Sales at the most expensive end of the market suffered particularly in the wake of Lehman Brothers' collapse.

But women continued to splurge on handbags. Hermes, maker of the Birkin and Kelly bags, last month had a 12% rise in second-quarter sales.