Burberry returns to growth with first quarterly sales increase in two years
- Analysts had expected comparable store sales to grow 1%, according to a company-compiled poll, after falling for seven quarters in a row
Burberry reported a 2% rise in its second-quarter comparable store sales on Thursday, beating market expectations, as the British luxury retailer’s turnaround measures start to bear fruit and its China business returned to growth.
Analysts had expected comparable store sales to grow 1%, according to a company-compiled poll, after falling for seven quarters in a row.
Burberry said like-for-like sales in China returned to growth for the first time in more than a year, rising 3% in the reported quarter, giving a crucial boost to the company’s recovery efforts under CEO Joshua Schulman.
The results signal a potential turning point for the 169-year-old trench coat maker, which has suffered seven consecutive quarters of shrinking sales as it battles weak luxury demand and an inconsistent brand strategy that alienated core customers.
Schulman, who joined in July 2024, has refocused the brand on its heritage outerwear and scarves, and cut a fifth of Burberry’s workforce in a bid to streamline operations and restore profitability.
Adjusted operating profit for the six months ended September 27 came in at 19 million pounds ($25.50 million), beating average market expectations of 12 million pounds. It reported a loss of 41 million pounds a year ago.