Fashion group Burberry has reported rising demand for its signature checks as the threat of the SARS virus recedes and the Iraq war ends.
The company said its results to date and better trading conditions were in line with its expectations for the full year to end March.
The label had suffered from a drop in tourism - a big generator of luxury sales - triggered by war tensions and the Severe Acute Respiratory Syndrome outbreak in some of its major Asian markets such as Hong Kong.
Analysts expect a consensus profit before tax of £128.7 million sterling for the full year, according to Reuters Research.
Total revenues at Burberry increased by 18 per cent in the first quarter from the same period last year, the company said. Retail sales leapt by a third, boosted by the acquisition of the operations of Burberry's distributor in Korea.
Comparable store sales, which had fallen over the first seven weeks of the year, recorded a marginal gain for the quarter as a whole thanks to strong summer promotional sales, the firm said.