British luxury fashion house Burberry has signalled a potential turnaround, reporting a significantly reduced half-year operating loss amid the early stages of a major strategic overhaul.
Financial Performance Shows Improvement
For the 26 weeks ending September 2025, the FTSE100-listed company announced an operating loss of £18 million. This marks a substantial improvement from the £53 million loss reported during the same period last year.
Revenue for the half-year reached £1.03 billion, a slight three per cent decrease from the previous year's £1.09 billion. However, a more positive sales trend emerged within this period, with a two per cent increase in the second quarter reversing a one per cent decline from the first quarter.
The 'Burberry Forward' Revival Plan in Action
The improved figures come as Burberry implements its ambitious 'Burberry Forward' recovery strategy. Central to this plan is a refocus on the brand's core heritage, particularly its iconic outerwear, and a drive to achieve £100 million in cost savings by 2027.
Chief Executive Officer Joshua Schulman expressed confidence in the chosen path. "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," Schulman stated. "We move forward with confidence that Burberry's best chapters lie ahead."
Regional Growth and Analyst Reaction
Sales growth was notably robust in key markets. Both the Americas and China reported a quarterly growth of three per cent, a positive sign given that China has been an epicentre for a global slowdown in luxury retail.
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 highlighted that "flat store sales in the first half, compared to a steep 20 per cent drop a year ago, marks clear progress." Duffy also credited Schulman's efforts to better align design and commercial teams for strengthening the brand's market strategy and reconnecting with its core customers.
With its head office in London and corporate bases worldwide, including Shanghai, New York, and Paris, Burberry's latest results offer a glimmer of hope that its strategic pivot is beginning to bear fruit.
