Robyn Duffy, Consumer Markets Senior Analyst at RSM UK, comments on Burberry’s interim results: “There will be a sigh of relief at Burberry today as a period of decline in comparable sales comes to an end. Flat store sales in the first half, compared to a steep 20% drop a year ago, marks clear progress, while the second quarter delivered the brand’s first return to positive comparable store sales growth in nearly two years.

“Operating profit of £19m, versus a £41m loss last year, highlights the impact of tighter cost control and improved inventory management.

“Schulman’s ‘Burberry Forward’ strategy is gaining traction, with early signs of improvement in brand perception. His efforts to better align the design and commercial teams have strengthened the go-to-market strategy and helped reconnect the brand with its core customers. A renewed focus on heritage categories, outerwear and scarves, has supported top-line growth and brought Burberry back to its roots.

“The luxury market continues to polarise, with ultra-luxury brands like Hermès and LVMH’s flagship houses showing resilience, while aspirational players face pressure on volumes and margins. Burberry sits between these tiers, giving it opportunity, but also exposure - making flawless execution critical.

“Ongoing softness in Chinese demand and uncertainty around US tariffs present near-term risks, although Burberry’s European manufacturing base should offer some protection. The next test will be whether the momentum seen in Q2 can extend through the key festive trading period and into FY27.”

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