Burberry has posted a 2% rise in comparable store sales for Q2, the luxury fashion brand’s first quarter of growth in two years.

Analysts had forecast a 1% rise in comparable store sales following seven quarters of decline, according to a poll by the company.

Burberry, publishing its interim results for the 26-week period to 27 September, designs and distributes trench coats, leather accessories and footwear. It revealed that its China business had shown signs of recovery in Q2, with the brand overseeing 10% growth in returning customers in the country.

The FTSE 100 company’s total revenue was £1.03bn for the H1 period, still 5% down from £1.09bn in the same period last year, however.

Burberry said it was still in the “early stages” of its turnaround and noted an uncertain macroeconomic environment, although it added it was still confident of a return to sustainable, profitable growth.

CEO, Joshua Schulmanu, said: “My belief in this extraordinary British luxury house is stronger than ever. 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/

“While it is still early days and there is more to do, we now have proof points that Burberry Forward is the right strategic path to restore brand relevance and value creation. We move forward with confidence that Burberry's best chapters lie ahead.”

On the back of the trading statement, Burberry has seen its share price climb by 8% in today’s trading.

AJ Bell investment director, Russ Mould, said that Burberry shares have been enjoying a “recovery rally” over recent months.

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

“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.”

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