Luxury goods group Burberry Group Plc has reported a 9 per cent increase in revenue in the first quarter ended 30 June 2005, as it embarked on a store-opening programme in Spain and Korea.

Burberry, which has also been revamping existing retail locations in the US, said that revenue excluding the effect of currency fluctuations totalled £113.2 million during the quarter compared to £103.7m in the same period last year.

The company boosted its selling space by approximately 8 per cent during the quarter and aims to maintain the rate for the rest of 2005.

Retail sales also rose 9 per cent during the first quarter, with continued 'soft' sales in the UK and a sales slump in Korea being offset by 'strong' increases on the Hong Kong and Southeast Asian markets.

Burberry's chief executive Rose Marie Bravo said in a statement: "We largely completed the seasonal transition of our stores and are encouraged by the initial consumer response to autumn/winter merchandise".

GUS, Burberry's parent company, plans to demerge the business later on this year.