A successful advertising campaign and a positive response to its spring collections have lifted second-half sales at fashion house Burberry to £390 million - a three per cent increase.
The figure includes a seven per cent drop in wholesale business, which analysts said was partly due to disappointing collections in the previous two seasons.
Burberry, which demerged from retail conglomerate GUS in December, said retail sales rose 13 per cent in the six months to March 31- driven by new store openings around the world and growth in existing outlets.
Chief executive Rose Marie Bravo said: "Retail operations were the highlight of Burberry's fourth quarter.
"Consumers' favourable response to spring merchandise, particularly womenswear, and an exciting advertising campaign contributed to the strong retail performance."
Retail sales were boosted by the acquisition of 12 retail locations in Taiwan in August last year while existing UK stores produced double digit growth, Burberry said.
In wholesale, sales declined 50 per cent in the US, mainly as a result of an adjustment in balance between wholesale and retail. There was a significant decline in Spain, although European markets achieved strong gains while the UK remained tough.
In February, the company launched a fragrance - Burberry London- supported by a global television advertising campaign featuring Oscar-winning British actress Rachel Weisz.
Ms Bravo, who has been credited with reinvigorating Burberry, will step down as chief executive this summer and will be replaced by Angela Ahrendts, executive vice-president of US clothing chain Liz Claiborne.
Ms Ahrendts, who will take over on July 1, has recently taken up her executive role at the group and is reported to be considering a detailed review of the business.
"She is in learning mode at the moment and has been busy assimilating the business and visiting a number of our worldwide retail outlets," said Burberry's chief financial officer Stacey Cartwright.
"While it's too early to say exactly what she might do, I'm sure she'll have her own ideas about the business... she will certainly make a notable impact!," she added.
Analysts believe one of her first tasks will be to speed-up the supply chain and restore confidence with some of Burberry's key partners.
