Burberry, along with other retailers, has seen weak sales in the UK

Global sales in the October to December period were up 3% on a year ago to �161m ($301m), Burberry said.

However, once currency movements - such as the fall in the value of the dollar - were stripped out sales were up 7%.

Chief executive Rose Marie Bravo described the results as "solid". However, the firm noted that the UK market had been "weak".

As well as currency movements, warm weather also hit Burberry by reducing demand for its famous raincoats.

Mixed pattern

Retail sales accounted for nearly 60% of Burberry's revenue in the quarter, growing by 6% once the currency movements are factored out.

In the US, sales increased in line with new store openings but were held back by a "muted" response to some of the firm's designs.

Burberry said that sales in continental Europe had done well.

However, the firm said UK sales were weak - echoing the news that many UK retailers have been issuing over the past couple of weeks. On Tuesday, the British Retail Consortium said retailers had suffered their worst Christmas in 10 years.

Sales in Hong Kong and south east Asia grew strongly, but in Korea sales "continued to be volatile" and were flat over the quarter.

Wholesale revenues - which include sales to department stores and other outlets - were up 5% on an underlying basis, while licensing revenues climbed 14%.