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Burberry Posts First Same-Store Sales Growth in Two Years as Turnaround Takes Hold

Early gains follow a brand refocus on timeless British luxury under CEO Joshua Schulman.

Overview

  • Comparable store sales rose 2% in the second quarter, topping the 1% forecast after seven straight quarters of declines.
  • Greater China returned to growth with a 3% Q2 increase, while the Americas rose 3%, EMEIA gained 1%, and Asia-Pacific was flat in the quarter.
  • Adjusted operating profit reached £19 million for the half year to Sept. 27, reversing a £41 million loss a year earlier, as revenue declined 3% to £1.03 billion.
  • Burberry recorded about £37 million in restructuring charges tied largely to redundancies after cutting roughly a fifth of its workforce and previously proposing around 1,700 job reductions.
  • Management said the recovery remains at an early stage given an uncertain outlook for luxury demand, even as investor sentiment improves with shares higher this year and a return to the FTSE 100.