Burberry defies luxury downturn as trench coats and scarves power revival

Burberry reported stronger-than-expected sales growth, bucking the wider luxury-sector downturn as demand for its trench coats and scarves supported its revival. The results offer encouragement for chief executive Joshua Schulman’s strategy of refocusing on the brand’s established products and offering customers better value.

Comparable sales rose 4 per cent in the three months to 26 September, including a 5 per cent rise in China and 11 per cent growth in the Americas. First-half adjusted operating profit reached £62 million, above analysts’ £44 million forecast, while Burberry shares rose 7 per cent in morning trading. The company is also restructuring to save £100 million a year and plans to update investors on its strategy in March.