Burberry narrows losses as turnaround begins to show results
Luxury fashion brand Burberry has narrowed its half-year operating loss in a crucial six months for the struggling company.
Burberry reported revenue of £1.03bn in the 26 weeks ended September 2025, it told markets this morning, down three per cent from £1.09bn last year.
Shares rose 2.55 per cent in early trades.
The FTSE100 giant reported an operating loss of £18m, down from a £53m operating loss in 2024.
It’s an important update for Burberry, which has been hoping to convince investors of its ambitious turnaround plan.
The fashion house has seen a renewed focus on outerwear, heritage and is targeting £100m in cost savings by 2027 via its ‘Burberry Forward’ plan.
“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,” CEO Joshua Schulman said.
“We move forward with confidence that Burberry’s best chapters lie ahead.”
‘Clear progress’ on sales
Crucially, sales rose two per cent in the second quarter of the year, after falling one per cent in the first quarter.
Schulmann said the brand has “begun to see customers return to the brand they love”.
Sales growth was particularly strong in the Americas and China, with quarterly growth of three per cent in both regions.
China has been the epicenter of a global slowdown in luxury sales, with a drop-off in demand causing issues for almost all major luxury brands.
Robyn Duffy, consumer markets senior analyst at RSM UK said there will be a “sigh of relief at Burberry today” as a “period of decline in comparable sales comes to an end’.
“Flat store sales in the first half, compared to a steep 20 per cent drop a year ago, marks clear progress.
“Schulmann efforts to better align the design and commercial teams have strengthened the go-to-market strategy and helped reconnect the brand with its core customers,” Duffy said.