Burberry's Bold Turnaround: A Luxury Star on the Rise

Burberry reported a smaller than anticipated 4% drop in quarterly comparable store sales, aided by a strong performance in the U.S. during the holiday season. CEO Joshua Schulman's focus on iconic products like trench coats and scarves resonated with customers, showing signs of renewed brand desirability.

Burberry has posted a less severe than forecasted 4% decline in quarterly comparable store sales, largely credited to strong holiday performance in the United States. The results, welcomed by the market, drove shares up by 16%, signaling renewed confidence among luxury consumers.

CEO Joshua Schulman, who has been at the helm for six months, attributed success to advertising campaigns centered on Burberry's classic trench coats and scarves. "We are delighted with these outcomes," he told journalists, noting significant customer growth in December, the first in over two years.

Sales in the Americas rose by 4%, with refurbished outlets in New York contributing positively. Other regions also showed signs of recovery, and despite earlier losses, the company is optimistic about making a profit this financial year.

(With inputs from agencies.)