Burberry beats third-quarter sales expectations as it steams ahead with turnaround

Burberry beat expectations for sales growth in the key holiday quarter and forecast annual profit in line with analyst expectations, as the luxury brand's pivot refocusing on its British aesthetic paid off and Chinese demand improved.

American CEO Joshua Schulman, who joined Burberry in 2024, has refocused the 170-year-old maker of checkered trench coats on outerwear and scarves, promoting accessible fashion which has resonated with shoppers alongside marketing campaigns playing on British stereotypes.

"Our customers responded to our immersive Timeless British Luxury campaigns and experiences, while the continued strength in our core outerwear category is now extending into accessories and ready-towear," Schulman said in a statement on Wednesday (January 21).

The company also reported strong growth in China as the luxury market there improved and it attracted more Gen Z customers, with comparable sales increase of 6% in the region.

Overall, third-quarter comparable sales rose 3%. Analysts on average were expecting sales growth of 2%, according to a company-compiled consensus.

 Production: Amy McConaghy/Reuters