British fashion brand Burberry reported pre-tax profits fell from £78.1m to £73.4m due to restructuring costs, although it saw a rise in half-year sales of 11%, from £354m to £392m. Burberry stated the demand for its luxury bags boosted sales as did the advertising surrounding the company's 150 th anniversary, for which Christopher Bailey designed a special 'icons collection' inspired by the House's archives.

Burberry's new quilted leather bags have been popular this season. Retailing for nearly £800, the celebrity association has kept the name in demand in fashion circles and the bag has been worn by the likes of Kate Moss and Elizabeth Hurley. Whilst sales of its accessories has been a huge success, Burberry has seen its concession at Selfridges been withdrawn due to underperforming and lack of direction and the bags are now sold amongst other brands on the main floor.

Burberry's new chief executive, Angela Ahrends, told the Telegraph "much work is needed behind the scenes. When businesses are growing at the rate this business was growing, it hides a lot of things." A primary focus for Burberry is to expand in markets such as Asia and America and the company is planning to roll-out and aggressive store plan in the US and also Europe. A company insider said Burberry is moving offices next year as it has outgrown its current headquarters behind Piccadilly Circus. They are rumoured to be moving to Victoria.