Handbag demand continues to boost Burberry sales

Fashion house Burberry reported a 19% surge in second-half sales today as demand for its luxury handbags and trench coats showed no signs of slowing.

The company, famous for its distinctive black, camel and red check design, said the increase in sales in the six months to March 31 had taken total sales for the year to £850m (€1.3bn), a 14% rise on a year earlier.

Retail sales, which make up just over half of the firm’s total income, rose 25% as the group also benefited from a positive response by shoppers to new stores in Manchester, Prague in the Czech Republic, and Seville, Spain.

Chief executive Angela Ahrendts said: “The significant investment initiated during this financial year to enhance the luxury component of the brand, advance retail expansion and evolve our operating model is driving accelerated growth across all three channels – retail, wholesale and licensing.

“This performance is consistent with our expectations for the full financial year.”