Burberry reported stronger-than-expected results for the quarter ending in June, with same-store sales down just 1% — beating analysts’ forecasts of a 3.7% decline. The surprise performance sent its London-listed shares up as much as 6.6%, bringing year-to-date gains to 27%.

Under CEO Joshua Schulman, the British luxury brand’s turnaround strategy is showing early momentum. A renewed focus on its British heritage, particularly classic outerwear like trench coats and scarves, has helped stabilize sales, with lightweight jackets performing especially well.

Regionally, the Americas led growth with a 4% sales increase, far exceeding expectations of 0.8%. By contrast, sales in China fell 4%. The company is also undergoing significant internal restructuring, including cost-cutting measures. In May, Burberry announced plans to reduce its workforce by around 20%, primarily affecting UK office roles and global retail staff.

Analysts suggest Burberry’s sales may have already turned positive in June, as Schulman pivots the brand to appeal to entry-level luxury consumers, stepping back from a previously unsuccessful push into the ultra-high-end handbag segment.