Burberry’s strategy centered on promoting its iconic scarves at more affordable prices, as well as timeless staples such as trench coats and leather bags
UK luxury fashion brand Burberry reported better-than-expected sales last quarter amid the broader industry slump.
Burberry’s comparable store sales rose 4% in the three months to September 26
Overall sales climbed 6% to more than $1.4 billion in the first six months of the year, up from roughly $1.36 billion a year earlier.
Sales climbed 14% in the Americas, but dipped 1% across Europe and the Middle East, partly due to the war in Iran.
The luxury maker saw revenue jump 15% even in China.
Meanwhile, luxury powerhouses LVMH, which owns Dior, and Kering, the parent company of Gucci, grappled with softer demand in China.
What is Burberry doing right?
The brand swung back to profitability under CEO Joshua Schulman’s two-year Burberry Forward strategy, which targeted aspirational shoppers. It centered on promoting its iconic scarves at more affordable prices, as well as timeless staples such as trench coats and leather bags.