The retailer, famous for its hallmark plaid fabric, reported retail sales – accounting for 70 per cent of its total revenue – up 13 per cent on a comparable store basis.
Burberry said the retail boost was driven by "excellent demand" for its new handbags, alongside a number of updated styles.
One of Burberry's best sellers in the past year has been its £750 Manor Handbag, which was carried by model Kate Moss in a high profile advertising campaign which also featured fellow Burberry model Stella Tennant.
It said total revenues increased 25 per cent on an underlying basis.
The group continued its international expansion during the quarter ended December 31, opening stores in California, Vienna in Austria, five concessions and one outlet store.
Burberry plans to open a further four stores in the fourth quarter of its financial year, in Manchester, Seville in Spain, Prague in the Czech Republic, and an outlet.
Recently-appointed Burberry chief executive Angela Ahrendts said: "This outstanding quarter has been led by Burberry's strong retail performance.
"These results are a credit to the extended efforts of the team in executing our core strategies."
Campaigners trying to keep open a Burberry factory in Treorchy, south Wales, which is due to close in March, said the sales boost proved jobs there could be saved.
Rhondda Welsh Assembly Member Leighton Andrews said: "These figures show there is no need to close Burberry's Treorchy factory.
"Burberry is doing untold damage to its reputation around the world because of the extraordinary meanness it has demonstrated to its workers in Treorchy."
Burberry was hailed as "one of the most promising stories in the sector" by broker Merrill Lynch, with its better than expected third quarter results. Merrill forecasts that Burberry revenues could pass the £1bn mark by March 2009.