British fashion house Burberry posted buoyant third quarter results on Tuesday. Underlying sales for the period rose a whopping 25 perent on sales up 22 percent to £206 million. Underlying retail sales - which acocunt for 70 percent of total turnover - gained 24 percent, driven by existing and new stores, while the wholesale business recovered from a disappointing first half with 33 percent underlying growth, thanks in part to a shift in timing of shipments. Burberry raised its expectations for the business unit to a low-to-mid-teen underlying percentage increase. "This outstanding quarter has been led by Burberry's strong retail performance," said chief executive Angela Ahrendts in a statement. In the second half, average underlying retail space rose by 14 percent.

Meanwhile, licensing revenues increased 12 percent on an underlying basis, driven by the excellent performance of fragrances and strong progress in watches. The company anticipates licensing revenue growth for the second half to be in the mid to high single digit range, with exchange rates continuing to affect figures.

"This performance is consistent with expectations for the financial year," said Ahrendts. The planned closure of its factory in Wales in March 2007 is expected to cost the company a total of £5.2 million this year, although it has estimated that the closure will save it £1.5 million on an annual basis.