Burberry plans to increase its retail selling space by 12% in the next six months.

Exclusive goods brand Burberry has today posted a 31% increase in profits, generated by the popularity of its luxury handbag and shoe collections.

The company said pre-tax profits increased from £95.8 million to £73.4 million for the six month period ending 30 September 2007. Revenues were also up 15%, coming in at £449.1m, compared with £392m during the same period in 2006.

Commenting on the results, CEO Angela Ahrendts said: “We are pleased with the progress Burberry has made in the first half of the year… This performance is consistent with our full year expectations. The diversity and balance that Burberry has across its products, channels and regions give us many opportunities for future growth.”

On announcing the results, Burberry also unveiled plans to increase its selling space in the second half of the financial year. The group expects to open an additional eight stores, predominately in Europe, and will increase its average selling space 12% year-on-year.

By Natasha Piscitelli