Burberry has reported a 6% rise in revenues to £1.1 billion for the six months to September 26, driven by demand for its signature trench coats and an improvement in the Chinese market.
Shares in the British luxury fashion house jumped around 8% on Thursday morning after it said its turnaround strategy, launched two years ago, is “working”.
Half-Year Results
Revenues grew 6% to £1.1 billion compared with the same period last year, with sales rising across womenswear, menswear, childrenswear and accessories ranges.
The company highlighted double-digit sales growth in outerwear, including its gabardine trench coat style, as well as new cashmere and leather products.
Regional Performance
Burberry, which had 412 stores globally at the end of September, said sales in Greater China grew by 7% in the first half, driven by local spending and intraregional tourism.
It described this as a stronger performance in a “challenging market” where the brand had previously faced waning demand for luxury goods. Sales also rose by more than a tenth across the Americas and in South Korea.
Return to Profit
The company returned to an annual profit last year and said this progress had continued, swinging to a pre-tax profit of £19 million from a £48 million loss the year before.
Chief executive Joshua Schulman said the turnaround strategy is paying off in an “uncertain environment”.
He said: “Five consecutive quarters of growth and improved quality of sales demonstrate that our strategy is working.
“Having laid the foundations for growth, I am more confident than ever that we will realise the full potential of this extraordinary British luxury brand.”
