Wealthy are back spending, says Burberry

"While the pace and level of the global economic recovery remain unclear, we remain confident that our strategies will continue to build momentum in the business," said chief executive Angela Ahrendts.

She said the 154-year-old maker of upmarket raincoats and handbags plans to drive growth by investing in new regions, such as Brazil and India, as well as new initiatives and digital commerce.

Burberry, which has manufacturing operations in Castleford and Keighley, said underlying revenue increased 6 percent to 707m in the six months to March 31.

Stacey Cartwright, the chief financial officer, said the outcome reflected particularly robust retail demand for outerwear and non-apparel, such as handbags, small leather goods, shoes and soft accessories.

She said sales of Burberry's top-end products, such as its Prorsum range, had recovered well.

"That was a little softer this time last year and that's recovered very nicely," she said. "By region Hong Kong, the UK and the UAE were the standout performers."

Luxury goods firms have been hit hard by the recession but Burberry has coped better than most because it reacted quickly by slashing costs and jobs as well as its stocks and ranges.

Evidence is growing that discretionary spending is back.

Last week LVMH, the world's biggest luxury goods group, beat forecasts for first-quarter sales, helped by a strong rebound in the US and Europe, while a study forecast growth in global luxury sales of over 4 per cent in 2010.