Despite the recession affecting many luxury retailers, as many people sacrifice luxury for economy, Burberry can report a good fiscal year which will be better than what analysts had previously forecasted.

The luxury retailer is reporting that sales are up 12 percent over the past three months to £380m. Prior to the fiscal period, analysts had said that the retailer would only since an increase of about 3 percent.

Angela Ahrendts, chief executive for the fashion firm, said that because of the recent rise in profits, total profits for the year would be able to beat the City expectations.

Burberry was one of the quickest retailers to react to the economic downturn by immediately cutting jobs and costs, but is now seeing that pay off as sales pick back up. Despite caution for the 2010-2011 sales year, the firm’s owners are confident sales will remain steady.

Like-for-Like sales for the stores increase by 10 percent with outerwear and leather products selling the best. Wholesale revenues also increased by five percent as Burberry began delivering a wider range to retail customers.

The boost in sales have placed the company has one of the top most risers for the FTSE 100. The rising trend looks as though it will increase further. Third quarter sales were up 13 percent and Burberry is beating out all current competitors.

Tags: Burberry, high sales for Burberry, recession sales