Burberry returns to profit on turnaround plan

Burberry returned to profit in its first half as the British luxury fashion label made progress on a cost-cutting turnaround plan.

Net profit was £6 million, or $8 million, in the six months to the end of September, compared with a £26 million loss a year earlier, Burberry said.

Revenue rose six percent to £1.1 billion, and the company's shares rose more than seven percent in early trading on the London stock exchange.

Burberry began a turnaround plan at the end of 2024 to boost sales and cut costs as the global luxury sector faced weaker demand in China. Under chief executive Joshua Schulman, the company has refocused on outerwear, including its trench coats.

Comparable retail sales grew four percent in the first half, helped by sales in China and the Americas.

Richard Hunter, head of markets at Interactive Investor, said Burberry's strategy was gaining momentum, while adding that the transformation was still in its early stages.