The luxury goods company Burberry has enjoyed a happy Christmas, with strong festive sales boosting revenues at the group.

Burberry said the cold and wet weather over the Christmas period had helped to drive trade in hats, scarves and coats.

Retail sales for the October to December quarter grew by 32%, with half the growth coming from existing stores and the other half from new outlets.

Total revenues for the group rose by one third overall, or by 18% on an underlying basis.

"Overall, I think our revenue performance was pretty outstanding in a relatively difficult market," said chief operating officer Mike Metcalf.

"All parts of our business we think performed relatively well."

War warning

But Mr Metcalf hinted that a war in Iraq could hit sales in the future.

He said the market for luxury goods could suffer if there was a travel downturn, which has been widely predicted should military action occur.

"There is great uncertainty hanging over the luxury goods industry, which is already having its effect in terms of travel patterns."

About a quarter of Burberry's sales are exposed to travel flows, Mr Metcalf said.

Burberry is majority owned by retail group GUS, which floated part of the fashion brand on the stock exchange in July last year.

Burberry shares closed up 13 pence, or 6%, at 229p.