Burberry beats forecasts as cheaper ranges lift China and US sales, shares rise nearly 10%

Results beat forecasts

Burberry said on Thursday, 12 November, that its second-quarter sales and first-half profit came in ahead of analyst expectations. Comparable retail sales rose 4% in the quarter ended 26 September, against an expected 3%. The British group credited its wider price ladder, including entry-level options, with winning over younger shoppers in the United States and China. Wholesale revenue rose 17% in constant-currency terms over the first half, and the company expects wholesale revenue to climb 10% to 12% in fiscal 2027.

Regional sales and pricing

Growth was uneven across regions. Over the six months to 26 September, sales rose 15% in China and 14% in the Americas, while the Europe and Middle East region fell 1%, a decline partly attributed to the Iran war. In the July to September quarter alone, Americas sales climbed 11% and Greater China sales rose 5%. Rival groups struggled by comparison, with LVMH and Kering both reporting weaker-than-expected third-quarter sales in October. Chief executive Joshua Schulman said the pricing ladder runs from scarves starting at £195 and cotton-cashmere socks from £85 up to leather bags that can cost more than £9,000.

Schulman tied the pricing approach to the Chinese result in a statement to journalists.

“Luxury customers around the world are experiencing some fatigue with exorbitant pricing and in this context our strategy of having great value for money is resonating strongly with Chinese customers.”

Greater China15%

Americas14%

Europe and Middle East-1%

Greater China

15 %

Americas

14 %

Europe and Middle East

-1 %

Data from the article text

Profit and share reaction

Burberry returned to a pre-tax profit of £19m for the six months to 26 September, against a £48m loss a year earlier, on sales of £1.1bn. Its adjusted operating profit for the first half of fiscal 2027 reached £62m, beating the average analyst estimate of £44m. Shares rose nearly 10%, topping the FTSE 100 and outpacing the wider luxury sector, after a 7% rise in morning trading. Bernstein analyst Luca Solca said the group's overall growth was almost as strong as Hermès and well ahead of LVMH's fashion and leather goods division in the same quarter.

Adjusted operating profit62

Average analyst estimate44

Adjusted operating profit

62 £m

Average analyst estimate

44 £m

Data from the article text

Strategy and outlook

Schulman, who took over in mid-2024, has tried to link Burberry with a warm British image, using campaigns that feature actors Pierce Brosnan and Fiona Shaw. He said the brand has always been more accessible than some European peers and has broad appeal across markets. Local shoppers have kept spending in their home regions even as tourist spending fell, and flagship city-centre stores, including those in London, held up better than outlets that rely on visitors. Schulman summed up the results in a short statement.

“Our strategy is working.”

The company cut almost a fifth of its workforce under a restructuring announced in 2025 and targets £100mn of annual savings by early 2027. Mike Ashley's Frasers Group counts as one of its investors.