Burberry Group PLC (LSE:BRBY) shares strutted 4% higher as the British fashion house reported a return to like-for-like sales growth in the second quarter, marking an early sign of progress in its strategy under chief executive Joshua Schulman.
Revenue for the 26 weeks to 27 September 2025 came in at £1.03 billion, down 5% at reported rates, while adjusted operating profit of £19 million compared to a loss of £47 million a year ago.
However, a £37 million restructuring charge this year, led to a reported operating loss of £18 million. Gross profit margins rose 410 basis points to 67.9%.
Schulman said Burberry has "begun to see customers return to the brand they love, resulting in comparable store sales growth for the first time in two years.”
Strong demand was seen for the Autumn/Winter 2025 collections, particularly in outerwear and scarves, and improving momentum across categories.
A cost efficiency programme also remains on track to deliver £80 million in annualised savings by the end of FY26.
Schulman said he remains confident in restoring brand "relevance" and long-term profitable growth, but the company is still in the early stages of its turnaround, with an uncertain macroeconomic backdrop.
"Our focus this year is to build on the early progress we have made in reigniting brand desire, as a key requisite to growing the topline.
"We expect to see the impact of our initiatives build as the year progresses. We will deliver continued margin improvement with a focus on simplification, productivity and cash flow."