Burberry reports stronger sales as turnaround gains pace
The British luxury brand recorded higher sales in the US and China, where it says it has won over Gen Z shoppers.
British luxury brand Burberry announced improved sales and profit figures for the second quarter, exceeding market projections. The company's stock rose by over 9% during early trading on Thursday. In contrast to the wider luxury market slowdown affecting major players like LVMH and Kering, Burberry has managed to boost sales in the United States and China, primarily attracting the attention of Generation Z shoppers.
Under the leadership of CEO Joshua Schulman, who began his tenure in mid-2024, Burberry has emphasized projecting a positive image of British culture. This strategy involves marketing campaigns that showcase British cinema and television figures in quirky short films. Burberry's holiday promotion displayed a gathering at a countryside mansion, starring Pierce Brosnan, known for his role as James Bond, and Fiona Shaw, a renowned actress from the television series Killing Eve.
The company experienced growth in sales during the July-September quarter, with the Americas region increasing by 11% and Greater China sales climbing 5%. However, sales in the Europe and Middle East region declined for the third consecutive quarter due to conflicts in the Middle East and reduced tourist activity impacting luxury brands.
Despite a broader slowdown in luxury spending, Burberry reported a broad expansion in comparable retail sales, growing by 4% during the second quarter ending September 26, surpassing analysts' expectations of a 3% increase. For the first half of fiscal 2027, Burberry's adjusted operating profit reached £62 million, exceeding the average estimate of £44 million set by analysts.
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