Luxury fashion house Burberry has reported a reduced half-year operating loss in a critical period for the beleaguered firm.
The company announced revenues of £1.03bn for the 26 weeks ending September 2025, a three per cent decrease from last year’s £1.09bn.
The FTSE100 heavyweight disclosed an operating loss of £18m, down from the previous year’s £53m loss.
This update is crucial for Burberry as it seeks to persuade investors of its ambitious recovery strategy, as reported by City AM.
The brand has refocused on outerwear and heritage items, aiming to achieve £100m in cost savings by 2027 through its ‘Burberry Forward’ initiative.
“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.”
Sales saw ‘clear progress’, with a two per cent increase in the second quarter following a one per cent drop in the first.
Schulman noted that the brand has “begun to see customers return to the brand they love”.
Sales growth was particularly robust in the Americas and China, both regions reporting a quarterly growth of three per cent.
China has served as the focal point of a worldwide decline in luxury retail, with weakening consumer appetite creating challenges for virtually all leading luxury houses.
Robyn Duffy, consumer markets senior analyst at RSM UK, suggested there would be a “sigh of relief at Burberry today” as a “period of decline in comparable sales comes to an end”.
She added: “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.”
Burberry has its head office in London with other corporate bases in Shanghai, Seoul, Hong Kong, Paris, Dubai, Milan, Barcelona, New York, Tokyo and Leeds.
