Burberry reported strong retail growth in the three months to December 31 with sales up 16% to £249m and like-for-likes up 10%.

Burberry said its strong retail performance was driven by sales of outerwear and accessories, and helped by digital initiatives such as the launch of its social networking website, theartofthetrench.com. Total sales were up 12% on an underlying basis to £380m.

Burberry’s wholesale sales were up 5% to £105m. Licensing revenue fell by 3% to £26m.

As a result of the wholesale growth, Burberry has adjusted its guidance for the second half and now expects wholesale to be down between 10% and 12% for the six-month period, rather than the 15% previously quoted. Burberry also expects its full-year pre-tax profit to be at the top end of market expectations.

The UK and Hong Kong were the standout performers for Burberry. European sales, excluding Spain, were up 18% to £112m for the period. Spain continues to be a poor performer for Burberry with sales down 3% for the period.

Burberry chief executive Angela Ahrendts said: “While continuing to plan cautiously for 2010/11, we are confident that our strategies by product, region and channel - underpinned by operational efficiencies - will drive profitable growth.”