London, England: Luxury goods group Burberry smashed third-quarter revenue forecasts and predicted annual profit towards the top of market expectations, adding to evidence that the rich are spending again.

The 154-year-old maker of upmarket raincoats and handbags also said it expected further profit growth in 2010-11.

Luxury goods firms have been hit hard in the recession but Burberry has coped better than most because it reacted quickly by slashing costs, jobs as well as its stock and range.

The group, known for its camel, red and black check, said underlying revenue increased 12 percent to 380 million pounds ($864 million) in the three months ended Dec 31.

That compared with analysts' consensus forecast for a rise of 3 percent, according to a company poll of 12, and a first-half decline of 5 percent.

Shares in Burberry, which have nearly trebled over the last year, closed at 599.5 pence on Monday Jan 18, valuing the business at 2.6 billion pounds.

Burberry said retail sales rose an underlying 16 percent, with growth in all regions led by Europe and Asia Pacific, while wholesale revenue increased an underlying 5 percent, driven by earlier and more frequent deliveries.

The firm raised its wholesale guidance for the second-half to down between 10 and 12 percent at constant currency from down 15 percent previously.

"Burberry has delivered a strong performance in both retail and wholesale, as customers around the world responded positively to our collections, marketing and service initiatives," said Chief Executive Angela Ahrendts.

"As a result we currently expect adjusted profit before tax for this financial year to be towards the top end of market expectations."

Prior to Tuesday Jan 19's update, analysts were forecasting a consensus underlying pretax profit of 188 million pounds for the year to end-March 2010, according to Thomson Reuters I/B/E/S, up from 175 million pounds in the previous year.

On Monday Jan 18, Richemont, the group behind Cartier watches and Chloe handbags, posted forecast-beating sales over the Christmas period, while last week Tiffany & Co said its profits should beat expectations after a surge in holiday sales.