Burberry has swung back to profit as a turnaround strategy fuelled by stronger demand in China and the US continues to gain momentum.
The historic brand posted a pre-tax profit of £19m for the six months to 26 September, compared with a £48m loss a year earlier, as revenue climbed six per cent to £1.1bn.
Adjusted operating profit more than tripled from £19m to £62m, while comparable retail sales rose four per cent, marking five consecutive quarters of growth.
The Americas and Greater China were standout performers, with comparable sales increasing 12 per cent and seven per cent respectively over the half-year period.
However, sales across Europe, the Middle East, India and Africa slipped two per cent, as weaker tourist spending continued to weigh on trading.
Burberry’s recovery has been supported by renewed demand for its signature outerwear, with sales in the category growing by double digits, alongside stronger performance in leather goods.
The luxury brand has also broadened its pricing offer, ranging from £85 socks and £195 scarves to high-end coats costing more than £9,000, as it looks to appeal to a wider customer base.
Meanwhile, wholesale revenue jumped 17 per cent, ahead of expectations, while ecommerce sales grew by a mid-teens percentage.
Chief executive Joshua Schulman said: “Two years ago, we launched Burberry Forward. Today, our brand and our business are stronger.
“Five consecutive quarters of growth and improved quality of sales demonstrate that our strategy is working.”
He added: “Having laid the foundations for growth, I am more confident than ever that we will realise the full potential of this extraordinary British luxury brand.”
Burberry expects to deliver further revenue growth and margin expansion over its current financial year, although it remains cautious about the uncertain luxury market.