Luxury fashion house Burberry has reported positive third-quarter trading, driven by its core outerwear and reinvigorated classics divisions.

Total revenues for the quarter ended 31 December 2005 rose 5% to GBP168m (US$295.7m) from GBP161m last year, representing a 1% same-store sales increase.

Retail revenues were up 21% to GBP115m during the third quarter, compared to GBP95m a year ago. Same-store retail revenues grew 11%.

Total wholesales revenues plunged 25%, with underlying revenue down 21%, while total licensing revenue edged up 5%, and 1% on an underlying basis.

Chief executive Rose Marie Bravo said: "In this retail-dominated quarter, we were pleased with the results for the all-important holiday period."

Bravo continued: "At the same time, the favourable initial response to early spring deliveries across all categories provides a good start to Burberry's 150th year."

Burberry bought 12 retail locations in Taiwan during August 2005 and also opened stores in San Diego, California, and Palm Beach Gardens, Florida, during the third quarter, as well as two concessions and three outlet stores. The company also opened three franchise stores in Mumbai, India, Athens, Greece, and Dubai.

Retail sales growth varied by region, Burberry said. In the US market, solid gains were driven by contributions from new and existing stores.

In Europe, the combination of new stores and increases at existing stores generally produced strong gains in Continental markets. The UK market improved marginally relative to recent trends.

In Asia, sales in Korea firmed relative to recent periods, producing a modest increase in this market for the quarter. Hong Kong continued to experience vigorous growth, driving an underlying gain across South Asia markets.

Burberry plans to open one store and an outlet in Florida during the fourth quarter.