Burberry sews up sales increase

Burberry expects great things from its new Knight handbag

Demand for luxury handbags and shoes helped fashion house Burberry to unveil a 30% rise in first-quarter revenues.

Sales rose to £167.5m ($339.7m) in the three months to June, traditionally the group's quietest quarter.

Like-for-like sales, which strip out the effect of new shops, rose 9%, while the opening of four new outlets worldwide boosted retail space by 14%.

Looking ahead, chief executive Angela Ahrendts said the group was on track to meet its full year expectations.

The fashion group said sales of its Beaton handbag, which retails for as much as £1,095, and its more modestly priced £295 Ashcombe handbags have been strong during the first three months of the financial year.

This month, the group launched its Knight bag which sells for £1,595.

Earlier this year the group - famous for its tan, black and red check design - posted a 21% rise in pre-tax profits to £156.3m for the year to March.