The biggest British luxury brand Burberry Group PLC began its new fiscal year on a gainful note - the company Wednesday posted an increase of 8 percent in its first-quarter sales, saying that luxury store openings counterbalanced a deceleration in wholesale revenue and increased discounting. The increase in sales surpassed the analysts' expectations of a 7.6 percent rise.

In a Regulatory News Service statement, the London-based company said that its sales in the quarter that ended June 30 soared to GBP229 million, from the same-quarter

year-before sales figures of GBP211 million.

Commenting on the company's sales figures, CEO Angela Ahrendts said: "Burberry has made a solid start to the year in what remains a challenging environment. We continue to execute on our strategies by product, region and channel, while driving operational and cost efficiencies. Our brand momentum, strong product designs and continuing back-of-house improvements mean that we are well-placed to deliver sustainable long-term growth."

The annual sales at Burberry increased 21 percent to GBP1.2 billion, chiefly because of the company's operations in the UK and South Korea, despite that fact that trading conditions continued to remain "difficult" in the US and Spain.

Ahrendts, who said in June that demand for luxury goods appears to be "stabilizing," intends opening 10 to 15 Burberry luxury stores this year.