BURBERRY has seen a 14 per cent rise in underlying sales, but has warned that trading conditions are getting tougher.

The luxury goods group said it was well-placed for the key festive period after seeing sales growth in the six months to the end of September.

It is also benefiting from the recent cooling in the pound's strength, having posed a serious headwind to the company earlier this year.

Chief executive Christopher Bailey, who is also Burberry's chief creative officer, said it had been a strong first half of the financial year. He added: "Looking ahead, while mindful of the more difficult external environment, we have never been better prepared internally for the all-important festive periods."

Retail sales in the first half increased by 15 per cent on an underlying basis and by eight per cent at reported exchange rates. Like-for-likes sales growth was 10 per cent. Product highlights included rainwear, driven by the relaunch of its heritage trench coat, as well as its leather bags and mens tailoring.

Burberry's retail arm achieved double-digit like-for-like sales growth in Asia Pacific, but in the second quarter the region saw some softening in growth from Chinese consumers both at home and when travelling.

It added that a more cautious approach from customers selling to European consumers and in the Asian travel retail markets meant that wholesale revenues at constant exchange rates were expected to be down by a mid single-digit percentage in the current half-year to March 31.

Across the group, revenues were £1.1 billion in the half year period, with £748 million coming from its retail channel. It has 216 retail stores, 224 concessions, 55 outlets and 66 franchise stores.