Key facts
- Sales rose 15% in China and 14% in the Americas but fell 1% in Europe and the Middle East, partly due to the Iran war.
- Schulman said Burberry's pricing runs from £195 scarves and £85 cotton-cashmere socks to leather bags costing more than £9,000.
- Schulman said luxury customers are experiencing fatigue with exorbitant pricing and Burberry's value positioning is resonating with Chinese customers.
- Schulman said Burberry spent two years on its Burberry Forward strategy returning the brand to its historic position in the luxury market.
- Schulman said global tourism is down but local customers have been spending in their own regions all year.
Burberry reported a pre-tax profit of £19 million in the six months to September 26, 2026, compared with a loss of £48 million a year earlier, as sales rose to £1.1 billion. Chief executive Joshua Schulman said the British luxury brand had outperformed a challenging luxury market to achieve sales growth of 6%, helped by online and wholesale sales, particularly in China and the US.
Sales rose 15% in China and 14% in the Americas but fell 1% in the Europe and Middle East region, partly due to the Iran war. Schulman said Burberry's focus on a pyramid of pricing, from scarves starting at £195 and cotton-cashmere socks from £85 to top-tier bags and coats that can cost more than £9,000 for a leather version, had helped it grow despite a tough market.
Schulman said wealthy shoppers around the world are travelling less and being more cautious about spending, hitting luxury brand sales globally. He said lightweight jackets, tropical gaberdine raincoats and the Cotswold range of leather bags and accessories featuring the brand's check had proved popular.
"Luxury customers around the world are experiencing some fatigue with exorbitant pricing and in this context our strategy of having great value for money is resonating strongly with Chinese customers," Schulman said. He added that Burberry has always had a somewhat more democratic approach than some European peers and has a universal appeal.
Schulman said Burberry has spent the last two years of its Burberry Forward strategy returning to its historic position at the sweet spot in the luxury market. He said investment in locally relevant marketing, such as special product for China's Valentine's Day celebrations in the spring and for the lunar new year, were also helping drive sales.
"It is no secret global tourism is down but the local customer has been spending in their respective regions," he said. "This is a trend we have been seeing all year long." Schulman said local spending was holding up in flagship city centre stores including in London, while tourists spending less was hitting sales in discount outlets. He said that while nobody has a crystal ball about whether customers would begin spending more freely, history suggested this is a very cyclical business.