Oct. 14 (Bloomberg) -- Burberry Group Plc, the U.K.’s largest luxury goods maker, reported second-quarter sales growth was 4.6 percent, helped by store openings and a weak pound, and said licensing revenue would shrink less than expected.

Revenue climbed to 343 million pounds ($548 million) in the three months through September, from 328 million pounds a year earlier, the London-based company said today in a Regulatory News Service statement. That beat the 331 million-pound average estimate of five analysts compiled by Bloomberg.

Licensing revenue at constant currency rates will fall between 5 percent and 10 percent for the year, an improvement on the previous forecast of a 10 percent to 15 percent drop on that basis, after Burberry adjusted the terms of a contract in Japan. Chief Executive Officer Angela Ahrendts last month said Burberry’s U.K. business was “on fire” as demand for luxury goods improves.

“We attribute the strength to a combination of new Burberry ranges well received during the recent London Fashion Week, as well as weak sterling,” John Guy, an analyst at MF Global, said before the results. He rates Burberry “neutral.”

Burberry gets more than half its revenue outside the U.K., where the dollar and euro have gained 9.1 and 19 percent against the pound in the last year. The company has closed its Thomas Burberry diffusion line and reduced its European wholesale accounts to improve profitability.

The company also said today that constant-currency wholesale revenue will fall about 15 percent in the second half, with the U.S. market showing “relative strength.”

The shares fell 4 pence, or 0.7 percent, to 537 pence in London yesterday. The stock has more than doubled this year.

To contact the reporter on this story: Sarah Shannon in London at sshannon4@bloomberg.net.

Last Updated: October 14, 2009 02:21 EDT