UK-based luxury fashion brand Burberry has warned that, if exchange rates remain at current levels, the full impact on profit in FY 2015 will be “material” despite a strong rise in sales.

Retail revenue for the three months to June 30th was up 17% underlying and up 9% on a reported basis. Meanwhile, comparable sales were up 12%.

Christopher Bailey, chief creative and chief executive officer, commented: "This first quarter performance reflects our focus on striving to give customers the best possible experience of the Burberry brand through ongoing investment in retail, digital and service, both on and offline. The 12% increase in comparable sales demonstrates our teams' success in unlocking the benefits of these investments, as we continue to concentrate on the things we can control in an uncertain external environment.

“As we build on this strong start to the year, our priority remains to connect consumers ever closer to Burberry through authentic products and experiences that celebrate our unique heritage. With great brand momentum and a focused vision, we remain confident of delivering sustainable, profitable growth into the future."