UPMARKET fashion brand Burberry said new stores had helped prop up first quarter sales after a tough start to the year.

The group, famed for its beige-and-red house check, said contributions from nine new outlets opened in the past year had increased underlying retail sales by about 21 per cent in the three months to June 30.

Burberry, which has 70 stores worldwide, partially floated on the London Stock Exchange last July and was spun out from majority stakeholder, Argos owner GUS, through a share offering.

Chief executive Rose Marie Bravo has been credited with reviving the brand's popularity since she joined the company, launching initiatives such as the recruitment of supermodel Kate Moss to promote the look.

However, it has hit rough times recently due to the bleak political and economic climate following the Iraq war and the outbreak of the Sars virus in Asia, which accounts for about a third of Burberry sales.

In a trading update ahead of the group's annual meeting today, Burberry said it had seen "a very challenging start to the year due to external factors".

But it added it had achieved gradual improvement as the quarter progressed and that results to date were in line with expectations for the full year.

Ms Bravo said: "Burberry achieved gradual improvement in trading as the quarter progressed.

"Burberry's results to date and the improving operating environment are consistent with management's expectations for the financial year."