Burberry turnaround begins to bear fruit
Burberry has seen a 2% rise in comparable store sales in its second quarter as its turnaround strategy begins to bear fruit.
This included uplifts of 3% in the Americas and a 1% rise in EMEIA. Like-for-like sales increased by 3% in China to mark the first growth in more than a year.
In the six months to 27 September, the luxury brand’s adjusted operating profit came in at £19 million compared to a loss of £41 million a year earlier.
Meanwhile, revenue declined by 5% to £1.03 billion.
Subscribe to TRBDuring the period, Burberry enhanced its in-store experience with elevated product displays, cross-category merchandising, and new clienteling tools. It also launched over 100 scarf bars and is on track to deliver 200 by the year end.
Joshua Schulman, chief executive of Burberry, said: “One year into Burberry Forward, my belief in this extraordinary British luxury house is stronger than ever.
“With the consistency of our Timeless British Luxury brand expression and an improved product offer, we have begun to see customers return to the brand they love, resulting in comparable store sales growth for the first time in two years.”
Looking ahead, Burberry said it remains confident that it is positioning the business for a return to sustainable, profitable growth.
Schulman added: “While it is still early days and there is more to do, we now have proof points that Burberry Forward is the right strategic path to restore brand relevance and value creation. We move forward with confidence that Burberry’s best chapters lie ahead.”
