Burberry returned to profit in the first half of its financial year on Thursday 12 November, as the British luxury brand's turnaround delivered stronger sales and fatter margins. Adjusted operating profit more than tripled to £62 million in the 26 weeks to 26 September, up from £19 million a year earlier and ahead of the £44 million analyst forecast, while reported operating profit was £54 million against an £18 million loss last year, according to Reuters.

Revenue rose 6% to £1.098 billion, and comparable retail sales grew 4% in both the first half and the second quarter — a fifth consecutive quarter of growth. Wholesale revenue increased 17% at constant exchange rates, and the adjusted operating margin widened to 5.7% from 1.9%. Net profit was £6 million, compared with a £26 million loss a year earlier, according to AFP.

Turnaround gains pace in China and the US

Chief executive Joshua Schulman said more affordable products had won over younger shoppers in the US and China, where sales grew 7%. The Burberry Forward plan, launched in late 2024, aims to revive the brand through sharper pricing, tighter costs and heritage outerwear, including the trench coats that lifted sales. Shares rose nearly 10% in London on Thursday, topping the FTSE 100, as investors welcomed the first clear sign that the recovery is producing results.

Burberry reported a free cash outflow of £147 million, against £50 million a year earlier, partly reflecting investment in stock ahead of the peak selling season. The company said it still expects revenue growth and margin expansion in the 2026-27 financial year, but gave no numerical profit target. A third-quarter update follows on 21 January, with a Capital Markets Day in London in March.