CEO says ‘democratic approach’ has helped brand outperform tough market, with big rises in China and US
Burberry has returned to profit as its back-to-basics strategy drove strong sales of the British brand’s coats, jackets and handbags over the summer.
Joshua Schulman, the chief executive, said the luxury brand had outperformed a “challenging luxury market” to achieve sales growth of 6%, helped by strong online and wholesale sales particularly in China and the US. “Our strategy is working,” he said.
Burberry said it made a pre-tax profit of £19m in the six months to 26 September after a loss of £48m a year before, as sales rose to £1.1bn. Sales rose 15% in China and 14% in the Americas but fell 1% in the Europe and Middle East region, partly due to the Iran war.
Schulman said Burberry’s focus on a “pyramid of pricing” ranging from more “affordable” scarves, starting from £195, and cotton-cashmere socks from £85, to its top-tier bags and coats, which can cost more than £9,000 for a leather version, had helped it achieve growth despite a tough market. Wealthy shoppers around the world are travelling less and being more cautious about spending, hitting luxury brand sales globally.
Sales of lightweight jackets and “tropical”
