Shares in Burberry soared after the British fashion house returned to profit off the back of renewed demand for its iconic trench coat. 

The FTSE 100 group took a £19m pre-tax profit in the six months to the end of September, recovering from its £48m loss at the same time last year, as its revenue grew six per cent to £1.1bn. Shares in the group gained seven per cent in early trading to 1,166p.

Burberry chief executive Joshua Schulman has sought to return the fashion house to the mid-market by cutting prices and boosting the visibility of its well-known trench coats since he was appointed in 2024. 

The fashion house told shareholders on Thursday that sales of its outerwear products grew by double digits in the period, driven by demand for its rainwear. 

Burberry said it saw “particularly good growth” in sales of its tropical gabardine, a variation of its iconic trench coat which sells for about £1,795. 

The group also saw strong demand for its cropped trench coats over the summer. This new design, which is available at a lower price point than the full-length trench, has been one of the ways Schulman has sought to make Burberry more affordable. 

His arrival at Burberry followed the fashion house’s short-lived foray into ultra-high fashion, which prompted a period of falling sales as its aggressive price hikes alienated scores of consumers. 

Cotswolds fever boosts Burberry

Schulman has also sought to arrest the luxury group’s declines in China – a crucial market for Burberry which had declined in the period before his appointment. Sales in Greater China were up nine per cent in the first quarter of Burberry’s financial year, though this growth has slowed to five per cent in recent months. 

In recent months, Burberry has capitalised on the growing popularity of the Cotswolds with wealthy Americans, introducing a new handbag design named after the sought-after English region, some of which sell for more than £2,000. 

The fashion house said sales of its leather goods have accelerated in recent months, driven by growing demand for its Cotswolds and vintage-check handbags.

Schulman said: “Two years ago, we launched Burberry Forward. Today, our brand and our business are stronger. Five consecutive quarters of growth and improved quality of sales demonstrate that our strategy is working.

“Having laid the foundations for growth, I am more confident than ever that we will realise the full potential of this extraordinary British luxury brand.”