Rose Marie Bravo has extended her contract with Burberry as its chief executive to July 2006. The news comes as Burberry announces a healthy start to its new financial year, with sales up 14 per cent at constant exchange rates to GBP103m in the three months to June 30. Underlying growth was 6 per cent once exchange rates are factored in. Persuading Bravo to extend her contract is a coup for Burberry, which is majority-owned by retail group GUS. Credited with the successful expansion and development of the brand, Bravo has been linked with several other high profile posts in the fashion and retail sectors.

Burberry chairman John Peace said: "The Board is delighted that Rose Marie has extended her contract. Under her leadership Burberry has been transformed into an international luxury brand and the business has achieved great success with respect to revenues and profitability."

Across the quarter, retail sales increased by 15 per cent on an underlying basis, and 7 per cent reported, with newly opened stores boosting 'modest gains' at existing stores. Retail sales accounted for approximately 54 per cent of total revenue in the quarter. Burberry plans to open seven new stores and concessions in the current financial year. Bravo stated: "The financial year is off to a good start. In this quarter which marks Burberry's seasonal transition from spring to autumn, we achieved strong sell-through of remaining spring/summer merchandise and experienced an encouraging initial consumer response to our autumn/winter collections. "This performance is consistent with expectations for the full financial year."