Burberry has reported a 19 percent rise in first quarter sales to £135 million, exceeding analysts' forecasts. Turnover of the luxury retailer's retail operations rose 35 percent, while wholesale sales dipped 3 percent in an effort to focus more on direct sales and less on bulk sales. Angela Ahrendts, Burberry's new chief executive, said the company's goal was to develop into a global luxury retailer. "The strong first-quarter results reflect the continued momentum of Burberry's retail operation across our primary product categories and geographical regions. As a whole, performance in the period to June 30 was consistent with expectations for the full financial year." Ahrendts added that the four main priorities for the company were to create "retail-led growth", enter "under-penetrated markets such as the US and Asia", increase sales of accessories and integrate Burberry's "disparate global operations".

Chief financial officer Stacey Cartwright said that accessories currently account for about a quarter of total revenue, but could this could become "much higher", as much as 40 percent of the total. She added that Burberry's most expensive accessories were attracting "phenomenal interest from consumers and the fashion press, especially the Manor handbag." High-margin accessories tend to be non-cyclical and resistant to the dips in consumer spending.

During the first quarter, Burberry opened new stores in locations that included Atlantic City, New Jersey, a replacement store in Taipei and two accessories concessions in Spain. The company is expected to roll out its retail space globally by at least 10 percent this year. It is believed to be investing about £50 million in new store openings in the Mid West of the US, secondary cities in Europe, and parts of Asia. Sales during the first quarter were strongest in Asia, where turnover soared 30 percent to £41 million, from £31 million last year. Sales in North America were weakest, but Ahrendts plans to resolve this by way of a major expansion into heart of the US. The Mid West has always been a tough market for luxury goods in the past.