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Sales of Burberry watches have helped the company's licensing division record a "stronger than expected" performance, according to a report.It said that a mid single-digit percentage decline in licensing revenue is now expected, instead of the previously forecast drop of up to ten per cent.Furthermore, like-for-like retail sales are up by more than nine per cent during the first-half of the year.Angela Ahrendts, chief executive of luxury watch maker Burberry, said: "The momentum at Burberry continues, with 21 per cent revenue growth and a material improvement in the gross margin in the first half. While mindful of our strong second half last year, we currently expect adjusted profit before tax for the full year to be in the top half of market expectations."Recently, Burberry unveiled its autumn/winter 2010 watch collection, including items carrying the firm's famous chequered pattern on the strap and steel timepieces for a more robust look.