Burberry announced on Tuesday sales are up 19%, thanks to a focus on luxury goods retail and a concerted push further into world markets. The controversy surrounding its recent Welsh factory closure seemed to have little influence on the company's momentum. The company said it brought in £850m in the six months to 31 March, with sales in its retail outlets driving the increase. Retail sales accounted for approximately 53% of total revenue in the second half. Comparable store sales increased 12%. The Spain retail conversion contributed approximately eight percentage points of the reported gain.

In the fourth quarter, all regions achieved double-digit gains. In the US, performance was balanced between existing and new store contributions. Gains at existing stores and concessions led excellent results in Continental European markets. In their second spring season, womenswear concessions in Spain demonstrated notable progress. The UK market, continuing to benefit from the Group's increased investment during the year, produced strong gains. Momentum in Asia Pacific continued, led by Hong Kong and other Southeast Asian markets.

Enthusiastic consumer response to spring merchandise following reduced end of season sale activity in January was a consistent factor underpinning performance in the fourth quarter. Outstanding outerwear sales, driven by updated styles and balanced assortments, led gains. Luxury handbags and runway apparel continued to experience excellent demand. Investment in design and development during the year has been a key factor enabling this product progress. Burberry will release its preliminary results for the year ended 31 March 2007 on 24 May 2007.