The company reported a 12% rise in total sales on a constant currency basis to £380 million ($620.8 million) in the three months to Dec. 31, with same-store sales at its network of retail stores up 10%, smashing analysts' forecasts for a rise of 3%. Including new store openings, total retail sales at constant currency increased 16%, again outperforming analyst expectations for an 11% increase.

Tight stock control at its retail stores and strong full-price sales of the groups autumn/winter collection mean there will be fewer clearance sales in the current fourth quarter, which will impact sales but benefit margins.

Wholesale revenue, which comes from department stores that stock the group's iconic red, black and camel-colored check design, rose 5% at constant currency, compared with market expectations of a 16% decline.

For the quarter ended April 30, net profits fell to $24.3 million, or 20 cents a share, on a 21.7 percent drop in sales to $523.1 million. "Despite reduced consumer demand in the luxury sector, Tiffany is, and is projected to remain, solidly profitable and will generate substantial cash from operations," said Michael Kowalski, chairman and chief executive officer.

The company is now one month into its second quarter and Kowalski said the rate of sales decline has lessened slightly in the Americas and more so in the rest of the world. Tiffany expects sales to fall by about 11 percent this year.

Excluding the effects of currency, sales fell 5 percent. Dollar figures have been calculated at average exchange rates for the period. "We're one of the only luxury players that reports in sterling and this is our time for benefits from that point of view," Stacey Cartwright, chief financial officer at Burberry, said in an interview.

In the six months ended March 31, revenues rose 21 percent to 663 million pounds, or $994 million. Stripping out the effects of currency fluctuations, the increase stood at 2 percent. Burberry's total retail sales grew 36 percent to 385 million pounds, or $577 million during the half, while excluding currency fluctuations they grew 14 percent.

Total revenues dropped 19.7 percent to $232 million for the period, compared with $288 million for the four weeks ended Feb. 23, 2008.

In the four-week February period, same-store sales in the Specialty Retail Stores segment, which includes Neiman Marcus Stores and Bergdorf Goodman, decreased 24.2 percent.

The company experienced weakness across all geographies and merchandise categories in the Specialty Retail Stores segment.