Shares in Burberry were down on the FTSE 100 in Wednesday morning trading after the luxury fashion retailer reported a rise in revenue in the first half ended 30 September 2011.

Total revenue was up 30 per cent on an underlying basis to £830 million, while underlying retail revenue increased 45 per cent to £528 million.

Around half of the growth in retail was attributed to strong sales of outerwear and large leather goods.

The group said its flagship stores in New York, London, Paris, Hong Kong and Dubai had "performed strongly". In China Burberry's acquired store sales growth was around 30 per cent.

CEO Angela Ahrendts commented: "Our first half performance, with 30 per cent revenue growth, clearly demonstrates the continuing global momentum of the Burberry brand, underpinned by consistent and balanced double-digit growth in retail and wholesale, all regions and all product categories.

"Looking forward, our focus remains on investing to drive growth and executing our innovative strategies in product design, digital marketing and retail, while being fully prepared to respond appropriately should we see any significant change in luxury demand."

Richard Hunter, head of equities at Hargreaves Lansdown Stockbrokers, commented, "Revenue growth continues at a blistering pace, despite recent markdowns of the stock given a potential Chinese slowdown.

"Even excluding its important Chinese market, the sales growth has been significant, with the demand for luxury goods apparently remaining intact. The company intends to continue its expansion plans, whilst remaining flexible in tapping on the brakes should circumstances dictate. Continuing investment in its business will of course weigh on profit in the medium term, whilst the company could become a victim of its own success given increasingly tough comparatives. Even so, along with a progressive dividend policy, Burberry remains a rare example of burgeoning retail growth.

"Valuation concerns persist, although the 11 per cent drop in the share price over the last three months (the wider FTSE100 has given up 9 per cent in that period) may have removed some of the froth. On balance, given Burberry's prospects, market consensus is a buy."

By 08:10 shares in Burberry were down 0.16 per cent on the FTSE 100 to 1,262.00 pence per share.