British luxury group Burberry posted a 10 percent rise in fourth quarter revenue as strong demand for its more expensive products in China helped it beat sales forecasts for the second half of the year.

The seller of raincoats and leather goods, known for its camel, red and black check pattern, said on Wednesday fourth quarter group sales rose to 503 million pounds ($769 million), building on better-than-expected third-quarter results after a strong Christmas period.

That took revenue for the six months to March 31 to 1.116 billion pounds, ahead of analysts' expectations.

Last September, Burberry shook the global luxury industry by warning of a spending slowdown, particularly in China - the driving force behind demand in recent years - but it has been more upbeat recently, highlighting a rebound in Chinese demand while posting third-quarter sales in January.

Retail sales, which make up 75 percent of group revenue, grew 14 percent to 376 million pounds in its fourth quarter, Burberry said, as higher average spending helped offset lower numbers of shoppers.

Comparable store sales increased by 7 percent, including double-digit rises in the Chinese mainland and Hong Kong.

It said it expected net new openings to deliver a low to mid-single digit increase in retail revenue in its 2013/14 year.

Second-half wholesale revenue - or sales through non-Burberry stores - fell 3 percent, as expected, due to smaller firms struggling in weak European markets where tourist spending has also shown signs of slowing.

Reuters