Liberty has revealed that trading over the past three months has been in line with expectations despite the economic turmoil.

The iconic luxury department store said that trading “continued to be in line with the board’s expectations” during the period from July 1 to October 1, “in spite of the continuing difficult market conditions”.

The retailer, which is 68 per cent owned by property group Marylebone Warwick Balfour, said it had seen increased footfall and sales over the three month period.

The retailer has improved and refurbished departments including its shoe boutique and expanded its womenswear offer. It has also introduced more exclusive international brands.

Liberty chairman Richard Balfour-Lynn said: “Despite turbulent financial markets and the impact of the credit crunch, I am pleased to report that our business is currently performing well and in line with the board's expectations.”

In August, the retailer announced that losses before tax in the six months to June 30 increased to£4.2 million from£2.2 million the year before. Total revenue was up 6 per cent to£21.7 million, up from£20.5 million in the previous year.