Burberry posts first sales growth in two years as turnaround gains traction

Fashion

Burberry has reported a 2% rise in comparable store sales in its second quarter, marking early progress in its turnaround plan under chief executive Joshua Schulman.

The gains included 3% growth in the Americas, a 1% increase across EMEIA, and a 3% uplift in China, the brand’s first quarterly growth there in more than a year.

For the six months to 27 September, adjusted operating profit reached £19 million, compared with a £41 million loss a year earlier.

However, revenue fell 5% to £1.03 billion, reflecting the ongoing repositioning of the business.

Burberry said it had enhanced its in-store experience through elevated product displays, cross-category merchandising, and new digital tools for store associates.

The brand also launched more than 100 “scarf bars”, with a target of 200 by year-end.



“One year into Burberry Forward, my belief in this extraordinary British luxury house is stronger than ever,” said Schulman, chief executive of Burberry.

“With the consistency of our Timeless British Luxury expression and an improved product offer, we have begun to see customers return to the brand they love.”

He added that while the turnaround remains in its early stages, the company now has “proof points” that the strategy is working. “We move forward with confidence that Burberry’s best chapters lie ahead,” he said.

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Burberry has reported a 2% rise in comparable store sales in its second quarter, marking early progress in its turnaround plan under chief executive Joshua Schulman.

The gains included 3% growth in the Americas, a 1% increase across EMEIA, and a 3% uplift in China, the brand’s first quarterly growth there in more than a year.

For the six months to 27 September, adjusted operating profit reached £19 million, compared with a £41 million loss a year earlier.

However, revenue fell 5% to £1.03 billion, reflecting the ongoing repositioning of the business.

Burberry said it had enhanced its in-store experience through elevated product displays, cross-category merchandising, and new digital tools for store associates.

The brand also launched more than 100 “scarf bars”, with a target of 200 by year-end.



“One year into Burberry Forward, my belief in this extraordinary British luxury house is stronger than ever,” said Schulman, chief executive of Burberry.

“With the consistency of our Timeless British Luxury expression and an improved product offer, we have begun to see customers return to the brand they love.”

He added that while the turnaround remains in its early stages, the company now has “proof points” that the strategy is working. “We move forward with confidence that Burberry’s best chapters lie ahead,” he said.

Click here to sign up to Retail Gazette‘s free daily email newsletter

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