Two years after Burberry CEO Joshua Schulman rolled out his turnaround strategy for the heritage fashion brand, the luxury retailer has returned to profit. Now, Burberry sees a strong opportunity to drive further growth with Gen Z consumers in China.

In an earnings update on November 12, Burberry reported a US$25 million (A$36.7 million) pre-tax profit for the six months to September 26, reversing a US$63 million (A$92.6 million) loss in the same period last year.

Revenue rose to US$1.45 billion (A$2.13 billion), a six per cent increase year-over-year, thanks to growth in all major product categories, including womenswear, menswear, childrenswear and accessories, and all regions except for Europe, the Middle East, India and Africa.

“Two years ago, we launched Burberry Forward. Today, our brand and our business are stronger,” Schulman said in a statement about the results. “Five consecutive quarters of growth and improved quality of sales demonstrate that our strategy is working… Having laid the foundations for growth, I am more confident than ever that we will realise the full potential of this extraordinary British luxury brand.”

Burberry benefited from its ongoing efforts to tighten its supply chain and other operational costs. Adjusted operating margin rose to 5.7 per cent, fueled by “better quality” sales with full-price transactions outstripping outlet sales in the half.

However, several retail experts attributed the positive results primarily to the Burberry Forward plan, which has seen the retailer refocus on what it does best – signature British outerwear and the classic checked pattern – and lean into British culture with top-tier celebrity endorsements like actor Pierce Brosnan and singer Olivia Dean.

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