Luxury fashion group Burberry has defied economic woes in China to post better-than-expected half-year figures and said under-pressure sales had started to bounce back.

But the trendy trench coat maker warned conditions remain "challenging" as growth in the world's second biggest economy slows.

Chief executive Christopher Bailey said "decisive action" helped underlying pre-tax profits rise by 3% to £153 million in the six months to September 30, against market forecasts for a fall.

It added that like-for-like sales improved in its third quarter after a dire end to the first half.

The group expects to see "mid single digit" growth in same-store sales in the final six months of its year, although it cautioned conditions were "challenging and uncertain".

Mr Bailey said: "We enter the second half mindful of this backdrop, but confident in our strongest-ever festive plans."

The forecast-beating interims and sales will relieve some of the pressure on Mr Bailey, who has battled against tough trading since taking over at the helm last year, with shares in the group tumbling by 25% over the past six months.

Burberry, which makes around a third of its sales from the Asia Pacific region and has a significant presence in China, has been hit hard by a reduction in luxury spending by Chinese shoppers, particularly in Hong Kong - traditionally a prime shopping destination for Chinese consumers.

Shares dived last month after it revealed a 4% slump in like-for-like sales in the second quarter, marking a sharp reversal of the 6% rise in the previous three months.

The group has been slashing costs and overhauling products, fast-tracking best-sellers and going back to its roots by focusing on its best-known items, such as trench coats, scarves and cashmere.

Richard Hunter, head of equities at Hargreaves Lansdown, said: "Given a disappointing trading update last month, expectations were low for these numbers, but Burberry seems to have pulled the rabbit out of the hat.

"Revenue has held up and adjusted profit has shown a modest improvement, which is an achievement given the headwinds being faced in the Asian region, and China in particular."