Burberry swung to a £19m pre-tax profit in the six months to the end of September, reversing a £48m loss from the same period a year earlier, as renewed demand for its trench coats lifted the British fashion house's turnaround under chief executive Joshua Schulman.

Revenue climbed six per cent to £1.1bn over the half-year, the FTSE 100 group told shareholders on Thursday. Shares gained seven per cent in early trading to 1,166p.

Schulman, appointed in 2024, has sought to return Burberry to the mid-market by cutting prices and raising the visibility of its signature trench coats. The strategy follows a short-lived push into ultra-high fashion that triggered falling sales as aggressive price hikes alienated large numbers of consumers.

Where is the growth coming from?

Outerwear sales grew by double digits in the period, driven by demand for rainwear, the company said. Burberry recorded "particularly good growth" in its tropical gabardine, a variation of the classic trench coat that sells for about £1,795.

Cropped trench coats also drew strong demand over the summer. The new design sits at a lower price point than the full-length trench and forms a central plank of Schulman's effort to make the brand more affordable.

Leather goods accelerated in recent months, led by the Cotswolds handbag line and vintage-check designs. Burberry introduced the Cotswolds bag, some versions of which sell for more than £2,000, to capitalise on the region's growing popularity with wealthy Americans.

Is China recovering?

Greater China, a crucial market that declined before Schulman's arrival, posted a nine per cent sales increase in the first quarter of Burberry's financial year. That growth has since slowed to five per cent in recent months.

Schulman said the broader strategy is delivering results.

"Two years ago, we launched Burberry Forward. Today, our brand and our business are stronger," he said. "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," Schulman added.

For shareholders, the half-year marks a £67m swing in pre-tax performance year on year — from a £48m loss to a £19m profit — on revenue of £1.1bn. Five quarters of consecutive growth now stand behind Schulman's claim that the foundations are set.