<div id="readability-page-1">  <p><time datetime="2026-05-15T05:00:00+01:00">    Friday 15 May 2026 5:00 am  </time>      <span> | </span><span> Updated: </span>   <time datetime="2026-05-14T16:18:50+01:00">    Thursday 14 May 2026 4:18 pm  </time></p>         <div>                                                                                                                 Add as a preferred        source on Google                        </div>    <figure>    <div>       </div> <img width="742" height="495" src="https://imageproxy.pbkrs.com/https://www.cityam.com/wp-content/uploads/2026/05/Burberry-2.jpg/query-dz03NDI?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" original-src="https://imageproxy.pbkrs.com/https://www.cityam.com/wp-content/uploads/2026/05/Burberry-2.jpg/query-dz03NDI"/>  <figcaption>Burberry's Lunar New Year collection has driven its resurgence in China</figcaption> </figure> <p><em>FTSE 100 fashion house Burberry had spooked the market with its drastic cost-cutting turnaround, but its full-year results saw the brand canter back to profit. Felix Armstrong looks at the firm’s renewed focus on Chinese consumers</em></p><p>British luxury brand Burberry has identified a symbol of “luck and prosperity” according to its latest collection for the Chinese New Year, which has become a big deal for a company that has turned to the east to return to profit. </p><p>In the Chinese zodiac calendar it’s the year of the fire horse, and some of the good luck associated with it has boosted the London-based firm’s stable of luxury apparel. </p><p>A resurgence in the Chinese market spurred galloping sales which helped it ride back to profit this year. </p><p>The FTSE 100 fashion house has endured a tumultuous few years which saw it temporarily slip out of the blue-chip index and embark on a £60m cost-cutting plan which came at the expense of 1,700 jobs.</p><p>One year after unveiling the £66m losses which sent the luxury firm into a tailspin, investors were clear that Burberry’s full-year results were a make-or-break moment for chief executive Joshua Schulman.</p><h2 id="h-burberry-boss-gleeful">Burberry boss gleeful</h2><p>But the fashion boss seemed undeterred by this pressure, and was all smiles as he announced the firm’s results on Thursday. </p><p>“I am pleased to say our strategy is working and there are opportunities for further growth,” he told analysts.</p><p>Burberry’s results did appear to be cause for glee, as the fashion house emerged out of the red to turn a £49m pre-tax profit and met analyst expectations with a £2.4bn revenue in the year to March. </p><p>The fashion house’s financial turnaround and growing sales came after it mounted a renewed focus on “Britishness,” following a short-lived foray into ultra-high luxury. </p><p>“Burberry’s return to a more mid-tier and aspirational customer base is a tacit admission that in trying to compete at the high end of luxury it had flown too close to the sun,” according to AJ Bell’s head analyst Dan Coatsworth.</p><h2 id="h-especially-important-to-win-in-china">‘Especially important to win in China’</h2><p>The fashion brand enlisted contemporary British celebrities like Olivia Colman, Cole Palmer and Olivia Dean to turbo-charge the brand’s turnaround, but the driving force of its recent success is found overseas. </p><p>China has long been a key market for Burberry, and whether it could regain this consumer base in earnest was a central question Schulman was expected to answer with these results. </p><p>Burberry’s answer was compelling, as it toasted 10 per cent sales growth in the Greater China region for the three months leading up to March, pushing sales in the region to a four per cent rise in the year overall.</p><p>The fashion house took £670m in revenue from China in the year, making it the company’s second best-performing region – below £821m in Europe, the Middle East and Asia.</p><p>“It’s especially important to win in China,” Schulman told investors, the area which accounts for 30 per cent of the firm’s global sales.</p><h2 id="h-gen-z-drives-china-growth">Gen-Z drives China growth</h2><p>The fashion company piled advertising investment into the region, releasing a Chinese New Year range which translates Burberry’s iconic trench coat and checked scarf into the bright red colours of the fire horse.</p><p>Burberry also rolled out a large-scale marketing campaign featuring Chinese actor Wu Lei, a series of documentary films celebrating “China’s natural landscape” and is planning a “finale” to its 170-year celebrations in Shanghai.</p><p>“The Burberry scarf has been a social media sensation in China and has really driven a new generation of young customers,” Shulman told analysts.</p><p>“That was really amplified by our significantly increased investment over Lunar New Year which had a much broader media plan and we had much more content because we had four major Chinese talents headline the Lunar New Year campaign,” he continued.</p><p>Burberry may have led the fire horse to water, but it cannot make it drink. </p><p>It remains to be seen whether the fashion house has made enough progress in China to return itself to long-lasting stability, Dan Lane, lead analyst at investment platform Robinhood UK, explained.</p><p>“You can stabilise a brand through discipline but premiumisation requires desire – if Burberry can maintain and lift interest in the fragile Chinese market and navigate a higher-inflation environment, today could well look like the turning point,” he said.</p> </div>

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<p>Burberry's focus on the Chinese market has led to a financial turnaround, reporting a £49m pre-tax profit and £2.4bn revenue for the year ending March. The brand's Lunar New Year collection, symbolizing luck, contributed to a 10% sales growth in Greater China. Burberry's strategy includes targeting mid-tier customers and leveraging local celebrities to enhance brand appeal. However, analysts caution that sustaining interest in China amidst economic challenges remains crucial for long-term stability.</p>

Year of the fire horse brings glad tidings as Burberry’s bet on China pays off