Burberry turns corner with first sales rise in two years

Russ Mould, investment director at AJ Bell, said: “Burberry shares have been enjoying a recovery rally over recent months as the company pursues its turnaround strategy, so the muted reaction to today’s trading update is no great surprise.

“However, that shouldn’t diminish the significance of a first increase in quarterly sales in two years and a return to growth in China, a key part of the Burberry growth story over the last decade or so.

“It demonstrates the progress chief executive Joshua Schulman is making with the major restructuring launched since his appointment in July 2024.

“Following the usual playbook, this has involved significant cost cutting but also a return to focus on its traditional strengths in products like trench coats and scarves.”