Burberry PLC Tuesday reported a 7% increase in second-half sales and raised its full-year profit forecast after the luxury clothing-and-accessories company's retail and wholesale divisions outperformed expectations.

The company, known for its classic raincoats and as well as new twists on its trademark red, black and camel-colored plaid, said full-year adjusted pretax profit will be ahead of market expectations, which analysts said were around GBP 200 million. ($306.8 million).