Burberry posts return to profitability as sales climb following back-to-basics plan

Burberry has returned to profitability after reporting a pre-tax profit of £19m in the six months to 26 September, recovering from a loss of £48m during the same period a year earlier. Chief Executive Joshua Schulman attributed the 6% sales growth to a back-to-basics strategy, highlighting strong online and wholesale performance, particularly in China and the Americas. The luxury brand focused on a pricing strategy ranging from affordable items like socks and scarves to top-tier coats and leather bags. This approach helped offset a challenging global luxury market where wealthy shoppers have generally become more cautious with spending and reduced travel. Local spending in flagship city center stores remained resilient despite a drop in global tourism. Investments in locally relevant marketing for events like China's Valentine's Day and the upcoming lunar new year also helped drive regional sales growth.