Burberry has narrowed its half-year losses, despite reporting a dip in sales, as its turnaround strategy begins to take effect.
The luxury British label said it was “still in the early stages” of its new strategy and expects to see “the impact of our initiative build as the year progresses”.
It comes as the retailer narrowed its pre-tax losses from £80m to £48m in the 26 weeks to September 27, 2025.
This was despite a 5% fall in revenues to £1.03bn. Retail comparable sales were flat in the half, with a 2% lift in the second quarter offsetting a 1% fall during the first.
Burberry reported a strong customer response to its autumn/winter collections and a positive reception from its wholesale partners on its upcoming summer 26 range.
The brand rolled out over 100 scarf bars during the period and is on track to double the number by the year-end.
Looking ahead, Burberry said it expects to deliver £80m in annualised savings by the end of the current financial year and that it is confident it is “positioning the business for a return to sustainable, profitable growth”.
Burberry chief executive Joshua Schulman said: “One year into Burberry Forward, my belief in this extraordinary British luxury house is stronger than ever.
“With the consistency of our Timeless British Luxury brand expression and an improved product offer, we have begun to see customers return to the brand they love, resulting in comparable store sales growth for the first time in two years.
“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. We move forward with confidence that Burberry’s best chapters lie ahead.”
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