The company said it is not overly concerned about the effect of potential macroeconomic headwinds on consumer spending as governments across the world take measures to cut public expenditure and rein in borrowing.
"We have such momentum in the Burberry brand. We continue to outperform irrespective of what the local economy is doing," said Chief Financial Officer Stacey Cartwright.
Burberry's better-than-expected increase in sales to GBP291 million from GBP229 million for the three months to June 30 was boosted by purchases of outerwear and non-apparel accessories and a strong performance from Europe and Asia-Pacific. The Americas grew at a low single-digit pace as promotional activity reduced, the company said.
Retail sales rose 21% year on year, with sales from stores open at least a year up 10% and new space generating 6% of total growth.
Wholesale sales rose 51%, helped by supply chain efficiencies which saw delivery orders scheduled for later pulled in early, while licensing sales increased 36%, supported by a favorable yen hedge rate.
Investec Securities analyst Katharine Wynne said the first quarter numbers were very good, with a standout performance from wholesale and strong figures from retail.
At 1143 GMT, Burberry shares were up 5 pence, or 0.6%, at 795 pence. Burberry's shares have risen 91% over the past 12 months as the group's trading has consistently exceeded expectations.
CFO Cartwright said the group, which sources 60% of its raw materials from Europe, is not majorly affected by the yuan de-pegging from the dollar, which is seen to affect Chinese imports. At constant exchange rates, first-quarter sales rose 21%.
In May, Burberry--known for its outerwear apparel such as raincoats and iconic red, black and camel colored checked designs--said it would increase store openings and upgrade its online business after it recorded a forecast-beating 23% rise in full-year pretax pre-items profit.
As well as upgrading its e-commerce operation, the group launched a social media site 'Art of the Trench' and produced a live global 3D broadcast at London Fashion Week in February to further digitize the brand.
In the past year, the company has reined in costs and continued to strip out unprofitable lines, curb overstocking and minimize the discounting of heritage items like raincoats and scarves to boost margins and "further purify the brand," said Cartwright.
It has clarified its ranges in the last 12 months, launching Burberry London as its wear-to-work label and Burberry Brit as its casualwear offering.
The company is guiding a 10% increase in retail selling space in the year to March 2011 and a 10% rise in wholesale sales for the first half.
Burberry expects a full-year decline of 5% to 10% in licensing as growth from global product licences is offset by a broadly flat performance from the Japanese apparel licence and the termination of the company's Japanese leather goods and menswear licences.
Capital expenditure will increase to GBP130 million from GBP70 million last year as the company invests in new stores, store refurbishments and its supply chain. It opened 8 stores in the first quarter, predominantly in the Americas and Asia Pacific
