Burberry has seen shop sales return to growth for the first time in nearly two years as the luxury brand’s turnaround mission starts to bear fruit.
Chief executive Joshua Schulman said there were ‘proof points’ his plan to refocus the brand on ‘timeless British luxury’ is working after a recovery of sales in China.
‘We have begun to see customers return to the brand they love,’ he told the British label’s investors on Thursday.
Schulman has vowed to restore the brand by highlighting its flagship outwear products, such as its £1,900 check-print coats.
In a boost for Schulman, sales at stores that have been open for more than a year increased 2 per cent in the three months to 27 September.
A 3 per cent increase in sales in China was another sign of ‘green shoots’, that a post-pandemic luxury slowdown in the region may be letting up
Naomi Campbell is one of the stars to feature in Burberry’s festive marketing campaign this year
‘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,’ Schulman added.
Burberry shares rose 4 per cent in early morning trading on Thursday.
Since Schulman took over in July 2024, shares have risen by around 44 per cent and the group has made a return to the FTSE-100 index after a year’s relegation.
He said the company had ‘veered off course with an unfamiliar brand expression’ under its previous leadership.
But in recent months, its signature coats and scarves have been doing well, as have newer products such as a £1,095 long ‘Brenda’ skirt and its £1,590 cropped trenches, he said.
High-profile campaigns – featuring Cara Delevingne and Rosie Huntington-Whiteley – have improved brand perceptions.
Schulman reiterated calls for the Government to scrap a hated tourist tax, arguing this would ‘reinvigorate the international visitor spending that support jobs, stimulate growth across the whole visitor economy.’
Tourist spending in the UK has been hit by the Brexit-era decision to remove a tax-free shopping scheme in the UK.
Robyn Duffy, consumer markets senior analyst at RSM UK, said: ‘A renewed focus on heritage categories, outerwear and scarves, has supported top-line growth and brought Burberry back to its roots.
‘The luxury market continues to polarise, with ultra-luxury brands like Hermès and LVMH’s flagship houses showing resilience, while aspirational players face pressure on volumes and margins. Burberry sits between these tiers, giving it opportunity, but also exposure – making flawless execution critical.’
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