Burberry wearing well as retail sales surge

Fresh from a 23 per cent jump in profits to 215 million for the last financial year, the iconic British label - famous for its camel, red and black check pattern - said revenues were up by a better-than-expected 24 per cent in its first quarter to 30 June.

Sales in its stores were ahead 16 per cent on an underlying basis and included another strong performance from the company's outlets in the UK.

Burberry said items such as handbags and other non-apparel items were its strongest performing area of business, while outerwear also did well.

The company has introduced a pricing policy which has ensured that heritage products such as rainwear and cashmere scarves were never marked down.

It has more than one million Facebook followers and its social media site, artofthetrench.com, has received several million page views since its launch in November.

The company's plans for the current financial year include an increase in capital expenditure to 130m from the 70m spent last year.

This will feature between 20 and 30 new stores in areas such as the Americas and Asia Pacific, as well as store refurbishments and investment in digital commerce.

Charles Stanley analyst Sam Hart said the near-term trading outlook remains uncertain given the possible impact of austerity measures on global demand.

He added: "Our best guess is that demand will hold up relatively well and continue to slowly recover from the depressed levels of 2009."