Burberry Reduces First-Half Losses Amid Turnaround

Burberry reported on Thursday that it had managed to reduce its losses in the first half of the year, thanks to the ongoing turnaround plan it launched a year ago.

For the six months ending in September, the British luxury fashion brand recorded a net loss of £26 million ($34 million), a significant improvement compared to the £74 million loss reported during the same period last year.

Faced with declining sales due to weaker demand from China, Burberry initiated a cost-saving programme in November last year aimed at addressing these challenges.

“While it is still early days and there is much more to be done, we now have tangible evidence that ‘Burberry Forward’ is the right strategic path to restore brand relevance and create value,” said CEO Joshua Schulman in the company’s earnings statement on Thursday.

The brand, known for its iconic trench coats, has also refocused its efforts on outerwear in a bid to improve its performance.

Schulman, who was appointed CEO in July of last year following the departure of former CEO Jonathan Akeroyd after a period of weak results and a poorly executed strategy, is leading the shift in direction.

Positive signs of recovery were already visible in September, when Burberry rejoined London’s prestigious FTSE 100 index after having exited it the previous year.

However, despite the narrowing of losses, the company announced on Thursday that sales had fallen by 5 percent to £1.0 billion during the first half of the year.