Burberry swings to profit as sales rise across China and the Americas

Burberry returned to profit in the six months to 26 September, with its back-to-basics strategy helping sales grow despite a difficult luxury market. The results matter because they suggest the British brand’s focus on a broader range of prices and locally tailored marketing is attracting shoppers as some luxury customers grow cautious about spending.

The company reported a pre-tax profit of £19m, compared with a £48m loss a year earlier, while sales rose to £1.1bn. Sales increased 15% in China and 14% in the Americas, but fell 1% in Europe and the Middle East, partly because of the Iran war; overall growth was 6%. Popular products included lightweight jackets, raincoats and Cotswold leather bags, alongside items ranging from £85 socks to leather bags costing more than £9,000.