GLOBAL - The British luxury house Burberry announced on Thursday, November 13, 2025, that it has significantly narrowed its losses for the first half of the fiscal year, providing the strongest evidence yet that its comprehensive turnaround plan is beginning to yield results amid a challenging global market for high-end goods.

For the six months ending September 27, 2025, the company reported a pre-tax loss of £48 million, a marked improvement from the £80 million loss recorded in the same period last year. On an adjusted basis, the company swung to an operating profit of £19 million, compared to a £41 million loss a year prior, a clear signal of returning operational health. However, overall revenue saw a 5% decline to £1.03 billion, reflecting persistent headwinds in the luxury sector.

In a statement accompanying the results, Chief Executive Officer Joshua Schulman, who took the helm in July 2024, expressed confidence in the new direction. "One year into Burberry Forward, my belief in this extraordinary British luxury house is stronger than ever," Schulman stated. "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."

The 'Burberry Forward' Strategy

The improved results are attributed to the "Burberry Forward" strategy, a multi-pillar plan initiated in late 2024 to revitalise the iconic brand. The strategy focuses on re-emphasising Burberry's "Timeless British Luxury" heritage, leading with its core outerwear products like the famed trench coat, realigning its distribution channels, and implementing significant cost-saving measures. The company is on track to deliver £80 million in annualised savings by its 2026 fiscal year, partly through a worldwide job reduction of approximately 1,700 roles.

A key success has been the stabilisation of sales. Comparable store sales were flat for the half-year, a significant achievement compared to the 20% drop seen a year earlier. The second quarter showed a 2% rise in comparable sales, with the crucial Greater China market growing by 3%, reversing a 5% decline from the first quarter.

Global Luxury Market Headwinds

Burberry's turnaround is occurring against a backdrop of a global slowdown in luxury spending. Weak consumer confidence, particularly in the vital Chinese market, has impacted the entire sector, with sales in China expected to remain weak or flat through 2025. Several analyses project that the global personal luxury goods market will see minimal growth, between 1% and 3% annually, until at least 2027, a stark contrast to the post-pandemic boom. This slowdown has forced brands to move away from aggressive price hikes and focus more on innovation and value to attract discerning customers.

Implications for Kenya and East Africa

While Burberry does not operate standalone stores in Kenya, its products, particularly fragrances and accessories, are available through duty-free channels and select high-end retailers. The performance of global luxury giants like Burberry serves as an important economic indicator for the region. A recovery in their fortunes suggests renewed spending power among the world's high-net-worth individuals, a demographic that is expanding in Kenya.

Kenya's luxury market is the second-largest in Africa and is projected to reach revenues of US$298.8 million in 2025, with steady annual growth expected. The country has approximately 9,400 ultra-high-net-worth individuals, a number forecast to grow significantly. This growing affluence is fueling demand not just for luxury goods but also for high-end experiences in travel, dining, and real estate. However, this market is also influenced by global trends. The slowdown seen in China and Europe could translate into more cautious spending among local affluent consumers who are internationally connected and exposed to the same market sentiments. Burberry's cautious optimism, therefore, reflects a sentiment that will be closely watched by retailers and investors in Nairobi's burgeoning luxury scene.