Liberty recorded sales up 5% for the four weeks to December 24 but warned that £7 million of restructuring costs and investment in the Liberty of London brand would impact financial results for 2007.
Liberty said that Christmas trading had been boosted by a strong performance on menswear and beauty as well as good sales of its own Liberty of London brand. It added that post-Christmas trading was in line with performance the previous year.
Liberty added that although 2007 performance was broadly in line with the previous period additional costs would impact the full year results to December 31.
Liberty chief executive Geoffroy de La Bourdonnaye, who joined the company last summer, said: "Given the current high street climate prior to Christmas, this performance reflects the attractiveness and relevance of a cutting-edge, design-led offer, together with a distinct upmarket setting and luxury service standard."
He added: "Our Liberty of London branded goods collection continues to perform well in what is a highly competitive market. We continue to expand our loyal customer base who clearly recognise that the exclusive experience of shopping at Liberty is getting better every year."
The department store added that it planned to strengthen its management team in 2008.