Mulberry has issued a profits warning — and it’s good news.

The company said  Thursday it expects profits for the year ending March 31 to be “ahead of market expectations.”

In December, Mulberry issued a profits warning for the current fiscal year, saying at that point that this year’s profits would be below last year’s figure of 3.4 million pounds, or $4.79 million at current exchange. But thanks to strong U.K. sales of Mulberry’s handbags over the Christmas period and January, Mulberry was able to change its tune. Mulberry said that during the week of Christmas and throughout January, its same-store retail sales in the U.K. rose 30 percent compared to the same period last year. The company added that sales are currently running at similar levels to last year’s “good” figures.

However, Mulberry said that it hasn’t altered its expectations for the fiscal year ending March 2010.

“Despite the strong trading in the U.K. since Christmas, the global economic outlook remains very uncertain, and European and international partners are adopting a cautious approach to placing orders for the [fall] 2009 season,” the company said.