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Burberry has cheered its first rise in store sales for two years as turnaround efforts also helped the luxury fashion label cut half-year losses.

The group said comparable same store sales lifted 2% in its second quarter and remained flat overall in the first half, compared with a 20% plunge a year earlier.

It reported pre-tax losses of £48 million for the six months to September 27, against losses of £80 million in the same period the previous year.

On an underlying earnings basis, it swung to a £19 million operating profit from losses of £41 million a year ago.

Joshua Schulman, chief executive of Burberry, said: “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.”

The group said it continues to trade against an “uncertain” economic background but that the impact of its recovery plan was set to pick up pace throughout the financial year.

It said: “We are still in the early stages of our turnaround, and the macroeconomic environment remains uncertain.

“Our focus this year is to build on the early progress we have made in reigniting brand desire, as a key requisite to growing the topline.

“We expect to see the impact of our initiatives build as the year progresses.”

Results showed sales in the most recent quarter rose 1% in Europe, Middle East, India and Africa, while they lifted 3% in the Americas and 3% in the key Chinese market, and were flat across the Asia Pacific.

The rise marked a rebound for Greater China, following a slowdown in luxury spending in the market, which had hit Burberry hard.

Burberry booked £37 million of restructuring charges due largely to redundancy costs as it shed jobs to cut costs.

Last November, the group launched a £40 million cost-cutting programme after first sinking to a loss.

In May, the company announced proposals to cut about 1,700 jobs worldwide over the next two years as part of the shake-up.

Robyn Duffy, consumer markets senior analyst at RSM UK, said: “There will be a sigh of relief at Burberry today as a period of decline in comparable sales comes to an end.”

She added: “Ongoing softness in Chinese demand and uncertainty around US tariffs present near-term risks, although Burberry’s European manufacturing base should offer some protection.

“The next test will be whether the momentum seen in second quarter can extend through the key festive trading period and into 2026-27.”