SOARING demand for luxury goods in China has helped Burberry set record annual revenues and profits, but the fashion chain warned of lower profits next year if the pound remained strong.

The 158-year-old firm - known for its camel, red and black check - met market forecasts as it posted an adjusted pre-tax profit up 8 per cent to £461 million on sales 17 per cent higher to £2.33 billion.

The London-based company said revenues were driven by an 11 per cent growth in China, as well as strong general sales of large leather goods, menswear and outerwear, which includes the brand's signature trench coats.

Loading article content

The group said footfall at its stores remained weak, but this was offset by an improved customer conversion rate, which saw retail sales lift 12 per cent.

In Europe and the Middle East, the firm said its retail trading was robust in the UK, France and Spain, but weaker in Italy and the United Arab Emirates.

In total Burberry runs 215 main stores, 227 concessions and 55 outlet stores.

EasyJet chief executive Carolyn McCall is also joining the Burberry board as a non-executive director.