BRITISH luxury group Burberry calmed fears about slowing demand in China with better-than-expected fourth quarter results as it sold more of its most expensive items.

Burberry said demand from affluent Asian customers for its more expensive handbags and coats helped boost sales. It said "aspirational" shoppers were spending less, but its most affluent customers were spending more and its staff were helping to push more expensive items.

Total group revenue for the six months to March 31 was nearly 1.12 billion pounds (US$1.71 billion), ahead of a company-compiled average analyst forecast of 1.1 billion pounds.

Burberry, which is reducing its Europe focused wholesale business to tap appetite for Western luxury in faster growing Asian and Latin American markets has been repositioning its brand at the higher end of the luxury market.

"Overall, this is a strong performance. While trading remains uneven, Burberry has regained strong momentum in critical Asian growth markets," said Cantor Fitzgerald analyst Allegra Perry.

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 on prospects there recently.

Fourth quarter group sales rose 10 percent to 503 million pounds, beating Perry's forecast of 489 million pounds and following a better-than-expected third quarter result. Retail sales, which make up 75 percent of revenue, grew 14 percent to 376 million pounds in the period.

Comparable store sales in the quarter grew by 8 percent, with double digit rises in China's mainland and Hong Kong.

Burberry said it would slow its store openings in 2013/14 after above average growth in the last two years. It said it would open a net 10 Burberry stores in the year, with three larger format stores opening in Shanghai to serve local customers and Chinese domestic tourists.

It expects the new stores to deliver a low-to-mid single digit percentage rise in retail sales.

In Europe, where consumer spending has been hit hard in a downturn, second half sales rose four percent to 288 million pounds, compared to a 15 percent rise in Asia Pacific.