Luxury fashion house Burberry has reported an underlying sales increase of 11 percent for the third quarter ended 21 December 2005 . The results were driven by new and existing stores. Total revenues for the quarter increased 1 percent on an underlying basis. Meanwhile, retail sales, which accounted for 68 percent of total sales, rose 11 percent to £115 million. The US and Europe experienced strong sales as did Hong Kong . Wholesale revenues, however, decreased 21 percent to £36 million, reflecting shipment timing differences relative to the comparative period, the company said. They were also affected by weak sales in Spain and fewer reorders in certain other countries.

Chief executive Rose Marie Bravo said, "In this retail dominated quarter, we were pleased with the results for the all-important holiday period. The business was led by our core outerwear and reinvigorated classics. At the same time, the favourable initial response to early spring deliveries across all categories provides a good start to Burberry's 150th year." The company said it anticipates a mid-to-high single digit underlying drop in wholesale sales in the second half.

www.burberry.com

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