Burberry Group reported its first quarterly 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, which track performance at stores open for at least a year, rose 2% in the second quarter ended Sept. 27.
That growth offset a 1% decline in the first quarter, leaving sales flat for the half-year period, according to the company.
Total revenue for the six months 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.
Growth was driven by a rebound in Greater China, which returned to 3% growth in the second quarter after a 5% decline in the first.
"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.
The company cautioned that it is still in the early stages of its turnaround and that the macroeconomic environment remains uncertain.
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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.