Burberry posts first quarterly sales growth in two years on China rebound

Burberry Group reported its first quarterly comparable sales growth in two years, a sign its turnaround strategy is beginning to gain traction despite a drop in overall revenue.

The British luxury brand said comparable store sales rose 2% in the second quarter, offsetting a 1% decline in the first quarter and leaving sales flat for the six months ended Sept. 27.

Total revenue for the period fell 5% to 1.03 billion British Pounds, but the company swung to an adjusted operating profit of 19 million British Pounds from a 41 million British Pounds loss a year earlier.

"With the consistency of our Timeless British Luxury brand expression and an improved product offer, we have begun to see customers return to the brand they love, resulting in comparable store sales growth for the first time in two years," Chief Executive Officer Joshua Schulman said in a statement.

Growth was driven by a 3% rise in the Americas and a rebound in Greater China, which returned to 3% growth in the second quarter after a 5% decline in the first.

The company, which is one year into its 'Burberry Forward' plan, cautioned that it is still in the early stages of its turnaround and that the macroeconomic environment remains uncertain.