Burberry shares jump as turnaround puts trench coat back in fashion

Burberry returned to profit in the six months to September as renewed demand for its trench coats and other products lifted sales, sending its shares higher. The results suggest chief executive Joshua Schulman’s effort to make the luxury brand more accessible is beginning to gain traction after earlier price rises coincided with falling sales.

The company reported a £19m pre-tax profit, compared with a £48m loss a year earlier, while revenue rose 6% to £1.1bn. Outerwear sales grew by double digits, and sales in Greater China increased 5% in recent months, slowing from 9% in the first quarter; Burberry also reported stronger demand for its Cotswolds and vintage-check handbags. Shares rose 7% in early trading to 1,166p.