Core Viewpoint - Burberry has shown signs of recovery with a 2% year-on-year increase in comparable store sales in the second fiscal quarter, ending a seven-quarter decline, driven by a resurgence in demand from the Chinese market [1][3][6]. Financial Performance - The company reported an adjusted operating profit of £19 million (approximately $25 million) for the first half of the year, a significant turnaround from a loss of £41 million in the same period last year [3][6]. - Comparable store sales in regions including China grew by 3% in the last three months, reversing a previous decline of 5% [3][6]. Strategic Changes - Under CEO Joshua Schulman's leadership, Burberry has implemented a revival plan focusing on classic outerwear and cost-cutting measures, which has begun to yield positive results [3][7]. - The strategy emphasizes a return to the brand's roots, highlighting products like trench coats and scarves, contrasting with previous management's focus on expensive handbags [7]. Market Reaction - The positive financial results have boosted market confidence, reflected in a 28% increase in Burberry's stock price year-to-date and its return to the FTSE 100 index [3][6]. - Analysts view Burberry's strategic plan as robust, indicating that all performance indicators have been met and that the execution is on track [8].

Core Viewpoint - Burberry's revival plan under CEO Joshua Schulman is showing positive results, driven by a recovery in demand from the Chinese market, leading to a turnaround in performance after a prolonged decline [1][4]. Financial Performance - For the second fiscal quarter ending in September, Burberry reported a 2% year-on-year increase in comparable store sales, surpassing market expectations and ending a seven-quarter sales decline [1][4]. - The adjusted operating profit for the first half reached £19 million (approximately $25 million), a significant recovery from a loss of £41 million in the same period last year [1][4]. - Sales in regions including China grew by 3% in the last three months, reversing a previous decline of 5%, marking the first growth in over a year for the Chinese market [1][4]. Market Reaction - The positive financial results have led to a strong market response, with Burberry's stock price increasing by 28% year-to-date, and the company re-entering the FTSE 100 index in September after being removed in 2024 [1][4]. Strategic Changes - CEO Joshua Schulman has implemented strategic adjustments focusing on classic products and cost reduction, aiming to restore brand appeal and profitability [5]. - The strategy emphasizes a return to Burberry's roots, highlighting iconic products like trench coats and scarves, contrasting with previous management's focus on expensive handbags [5]. - Cost control measures include a plan to reduce the workforce by about 20%, with restructuring costs related to layoffs amounting to £37 million [5]. Industry Context - Burberry's performance adds evidence of a recovery in luxury goods demand, with analysts noting that all indicators have been met and the execution of the strategic plan is on track [6].