
Burberry shows early signs of recovery as first quarter sales fall less than expected
Shares in Burberry, which have more than doubled since September, rose 5% in early London trade.
Known for its trench coats and check pattern scarves, Burberry is using its British heritage designs to try to win back customers under the leadership of CEO Josh Schulman, who took over a year ago.
Comparable sales returned to growth in Europe, the company said, while trading in the Americas strengthened. Sales fell in China and in the rest of Asia, but the rate of decline was around half the level seen in the previous quarter.
"The improvement in our first-quarter comparable sales, strength in our core categories, and uptick in brand desirability give us conviction in the path ahead," Schulman said, adding that the autumn collection was being "well received".
Burberry has issued several profit warnings in recent years, and as part of its turnaround drive since Schulman took over, it plans to cut a fifth of its global workforce, a radical cost-cutting measure that investors have welcomed.
The 1% drop in overall comparable retail sales in the first quarter, which ended on June 28, beat analysts' forecasts for a 3% decline in a consensus provided by the company, and improved on a 6% fall in the previous quarter.
Analysts at Citi said the brand had reported its third consecutive quarter of like-for-like improvement since Schulman launched its new strategy last November, implying comparable sales could turn positive in the current quarter.
"In a quarter marked by further macro and geopolitical pressures and weaker tourist spending in Europe and Japan, Burberry has likely held up better than peers quarter-on-quarter," they said.

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles


BBC News
24 minutes ago
- BBC News
Why is River Island in trouble?
The future of River Island is in the balance ahead of a crucial court ruling on the fashion chain's restructuring British chain - which once collaborated with Rhianna - revealed in June that it intends to close 33 shops in the UK, putting hundreds of jobs at risk, and also wants its landlords to cut rents at a further 71 said more people shopping online and higher costs to run stores had contributed to heavy financial losses. Reports have suggested it could collapse if its plans are not accepted by the High Court next month, although the firm said it was "confident" they will what has gone wrong for the High Street stalwart? Catherine Shuttleworth from Savvy Marketing said River Island's challenges were "significant" but they were shared by the wider retail believed the fashion chain had been affected by several factors including having its stores in the wrong place and facing rising costs."River Island has maintained an expensive portfolio of stores at a time when costs are rising and footfall is falling," she told the BBC."Many older stores find themselves in parts of town which may have been busy 20 years ago but now find themselves on the periphery."Known for affordable and stylish fashion, brands such as River Island and Topshop dominated High Street fashion from the early 2000s to the mid first River Island store opened in 1988, after being originally founded in 1948 under the Lewis and Chelsea Girl brand before being family-owned retailer currently has 230 shops, employs about 5,500 people and was one of the first big UK High Street names to launch online in the late recent years have proved tough. Ben Lewis, chief executive of River Island, said last month that a sharp rise in "the cost of doing business" over the past few years had "only added to the financial burden".Intense competition in fashion retail, not only from the likes of Boohoo, but also from Chinese giants such as Shein and Temu, have also added to its most recent set of accounts revealed a £33.2m loss, with sales down 19%. Creditors will start to vote on River Island's restructuring plan on 4 August, and the High Court will decide whether to approve it on 7 the plans are rejected, then it is understood the retailer will revise its Island says the plan is a "proactive measure" to place it on "a firm footing"."We have been having positive conversations with key stakeholders and are confident that we will achieve approval of the plan in the next few weeks," a spokesperson for the retailer Sherrard, managing director of Label Sessions, said River Island was in trouble now because of actions not taken years ago."What's very apparent here is that from landlords and suppliers, to investors, no one believes in River Island enough to do it some favours," he told the Sherrard also said River Island was missing the mark when it comes to keeping loyal customers."Customers know it, but they don't know why they should care about the brand," he added. Can it make a comeback? Mr Sherrard said River Island may need more time to turn its fortunes around."River Island's leadership team clearly think that if they can just get a few more months, they can turn the ship around, but the best businesses know that you always have a lot less time than you think before change hits the market," he Farrell, fashion editor at the Who What Wear website, told the BBC that River Island's fate depends on how it chooses to rebrand."Times are tough for High Street brands that need to feel premium to stay afloat." she current best performing brands are those that "don't rely on buzzy microtrends", she added, but provide "interchangeable pieces rather than seasonally targeted drops"."As we wait with baited breath for the return of Topshop to see just how well the nostalgia factor will support an affordably-priced, younger-skewing brand in the years to come, the concern here for River Islands longevity is who its key market is." Additonal reporting by Connie Bowker


The Independent
26 minutes ago
- The Independent
Reeves will have to ditch key party manifesto pledge, IMF warns
The International Monetary Fund (IMF) commended Rachel Reeves' overall economic strategy but issued a warning regarding the UK's limited fiscal headroom. The IMF indicated that this lack of financial flexibility might compel the Chancellor to abandon key manifesto pledges. Suggested measures from the IMF included potentially increasing taxes on working people, replacing the state pension triple lock, or introducing charges for NHS services for higher-income users. The IMF also identified the ongoing impact of Donald Trump's tariffs as a challenge for the UK economy. Rachel Reeves responded by asserting that the government's decisions are fostering economic recovery and that their plans are designed to tackle inherited economic challenges.


The Independent
26 minutes ago
- The Independent
Innovation heats up China's ice cream market
As scorching temperatures continue to grip much of China, the country's ice cream market is heating up — not just in terms of sales, but also in competition, innovation and strategic expansion. Industry players including dairy giants and upstart digital brands are capitalising on evolving consumer preferences, healthier lifestyles and new retail formats to reshape what was once a seasonal indulgence into a year-round, experiential category. According to Mintel Group, a market research institute, the packaged ice cream category in China is expected to maintain steady growth in the years ahead, buoyed by the development of cold-chain logistics, increased outdoor activities and the rapid development of e-commerce channels. However, it faces rising pressure from fresh ice cream and on-premises tea drink alternatives, and growth is increasingly being moderated by health-conscious consumers. Mintel forecasts a compound annual growth rate of 2.8 per cent in sales from 2025 to 2029, with volume growing at 1.8 per cent annually. The category is finding new ways to align with consumers' values around wellness, ingredients and emotional connections. Leading the charge is Wall's China, under The Magnum Ice Cream Company, which has doubled down on premiumisation and product diversity. The brand rolled out over 30 new products in 2025, with a focus on personalisation, texture innovation and indulgent experiences. 'We've observed that Chinese consumers increasingly seek out layered textures and novel forms,' said Benny Xu, Asia CMO of The Magnum Ice Cream Company. 'Our Cornetto multilayer sticks — featuring the brand's first-ever seven-layer ice cream — were developed in China and offer depth, crunch and a rich burst of flavour with every bite.' The company has also expanded beyond its classic chocolate bar format, launching its first frozen brownie cake dessert and the debut cone product under the Magnum brand in China. Wall's China's aggressive innovation strategy also extends into marketing. In March, the brand partnered with Guangling ancient town of Yangzhou, Jiangsu province, to launch a cultural creative city intellectual property ice cream, selling from over 800 locations. 'We turned ice cream into an edible cultural business card,' said Xu, adding that it was a 'model case' of merging tourism, heritage and snacking. To support this dynamic growth, Wall's China continues to invest in supply chain upgrades. Its facility in Taicang, Jiangsu province is the world's first 'lighthouse factory' in the global ice cream sector, which enables real-time production optimisation, energy efficiency and faster delivery — laying the foundation for personalised, sustainable ice cream experiences. Having built a reputation for high-quality A2-type milk, domestic dairy player Adopt a Cow has quickly emerged as a contender in the ice cream arena. Since entering the category in March 2024, the company has launched over 10 new products, tapping into its vertically integrated supply chain and clean-label positioning to set itself apart. Under the summer heat, Adopt a Cow's fresh milk-based offerings — including the Jing Mountain Matcha fresh milk ice cream — have seen explosive demand. The product, made from Hangzhou, Zhejiang province-grown matcha and the brand's own fresh milk, sold over 140,000 units in a week on e-commerce platforms. As consumer expectations evolve, ice cream is no longer just about cooling off. It's also about comfort, self-expression and shared experiences. Nestlé's ice cream unit is actively responding to these new demands through an innovation strategy built on four pillars — authentic ingredients, dessert-inspired textures, premiumisation and fun. The brand's offerings span traditional cones and sticks to novel forms like mini balls and rice dumplings. Its 'colourful personality box', launched in partnership with NetEase Cloud Music in April, aimed to engage Gen Z consumers around themes of identity and emotional resonance. In its most recent initiative, Nestlé became the official ice cream sponsor for the 2025 Jiangsu Football City League, connecting with youth through a fast-growing cultural-sports event that blends competitive energy with city-level creativity. With its 8th power and heartfelt cone products, the brand positioned itself as the 'cooling force' amid the summer heat and football fervour.