Burberry Sees Early Turnaround Momentum as China Sales Rebound

Burberry reported stronger-than-expected results in its second quarter, offering early signs that its turnaround strategy under CEO Joshua Schulman is beginning to take hold. The British luxury fashion house posted a 2% increase in comparable store sales, outperforming analyst expectations of a 1% gain and ending seven straight quarters of declines. This improvement highlights renewed consumer interest and the brand’s gradual return to stability.

A major driver of this positive shift was China, one of Burberry’s most important markets. Comparable sales in the region rose 3%, marking the first return to growth in more than a year. This rebound is especially significant given recent volatility in the Chinese luxury sector, and it underscores the impact of Burberry’s efforts to reignite demand and strengthen brand desirability.

Performance across other regions was modest but steady. Sales in Europe, the Middle East and Africa edged up 1%, the Americas gained 3%, and the Asia-Pacific region held flat. While not dramatic, these results contribute to a more balanced global performance as the company works to rebuild momentum.

Profitability showed a notable upswing during the first half of the year. Burberry recorded an adjusted operating profit of £19 million for the six months ending September 27, surpassing the £12 million expected by analysts and reversing a £41 million loss from the prior year. Revenue for the period slipped 5% to £1.03 billion, but retail comparable sales were flat—an improvement from the sharp 20% drop seen a year earlier.

Burberry emphasized that its turnaround remains in the early stages and that global economic uncertainty continues to pose challenges. However, the company expects its strategic initiatives—focused on simplifying operations, boosting productivity, and improving cash flow—to deliver stronger results as the year progresses. With efforts centered on building brand heat and driving long-term profitability, Burberry remains optimistic about returning to sustainable growth.