What happened? BRBY reported 2Q LFL at 2%, a touch better than BNPPE (2Q/1H26 preview (due 13 Nov) post call with IR) and consensus expectations. This was a 3ppt q/q improvement driven by APAC flat (1Q: -4%), with Greater China up 3% (vs. -5% in 1Q). Americas slightly decelerated to +3% (1Q: +4%) and EMEA was flat at +1%. By cluster, Chinese improved from - MSD % to flattish, Europeans were up LSD and Americans were flattish. 1H26 EBIT came in at GBP 19m, a touch above consensus estimates (GBP 12m) and BNPPE at GBP 10m. Gross margin was 67.9% (+450bps), owing to non-recurring inventory headwinds (+330bp) the previous year and operating efficiencies (logistics/transport). In terms of cost savings, Burberry delivered the GBP16m remaining from the first programme. Regarding the second programme starting this year (totalling GBP60m by FY 27), benefits will be more 2H weighted. In the outlook, the company updated: 1) wholesale performance for FY 2026, expected down MSD % and entailing positive 2H26; 2) lower FX impact, c50m on top line (vs GBP 85m previously) and GBP 5m on adj. profit (vs GBP 15m previously). The company does not anticipate significant changes to adj. EBIT consensus of GBP 150m. This reflects (i) the holiday season still ahead, and (ii) a willingness to retain the flexibility to invest more. 3Q seems off to a good start, in line with 2Q; as a reminder, 3Q last year benefitted from some discounting activity, which contributed to c3ppt of top line. Restructuring charge (below the EBIT line) amounted to GBP 37m (vs GBP 12m in 1H24), on track for FY at GBP 50m. BNPP Exane View: Burberry shares c10% below their peak, reached at the end of July-25. The stock is trading on 1.6x 1-year forward EV/sales, c60% discount vs the Luxury sector (vs 20% historical). We believe this is a solid set of 1H results, comments on current trading and upgraded wholesale guidance show Burberry''s recovery is on track.