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Burberry Logs Higher Sales in Fiscal First Quarter Amid Turnaround Strategy

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Burberry Logs Higher Sales in Fiscal First Quarter Amid Turnaround Strategy

Burberry Group (BRBY.L) recorded an increase in retail revenue for its fiscal first quarter, with sustained strength in the Americas and Greater China offsetting the ongoing impact of the war in the Middle East.

The British luxury fashion group's retail revenue reached 455 million pounds sterling in the 13 weeks ended June 27, 2026, up from 433 million pounds in the 13 weeks ended June 28, 2025, according to a Friday trading update.

Comparable retail sales were up 5% on an annual basis, mainly driven by 12% and 9% growth in the Americas and Greater China regions, respectively. In Asia Pacific, comparable sales rose 3%.

The Europe, Middle East, India and Africa region, on the other hand, saw a 3% fall in comparable retail sales due to lower tourist spending amid the Middle East conflict. Excluding the Middle East, comparable sales in the EMEIA region was down 1%.

"I am pleased with our progress in the first quarter and the momentum we are building with Burberry Forward . For the first time in three years , we saw growth across our Womenswear, Menswear, Accessories and Childrenswear divisions, anchored by the outperformance of Outerwear. Our strategy is working," Chief Executive Officer Joshua Schulman said. "We are attracting a broad range of luxury customers across product categories, channels and geographies, reinforcing my confidence in the opportunities ahead."

For fiscal 2027, Burberry aims to achieve revenue growth and margin expansion in line with expectations. The group raised its wholesale revenue growth guidance for the first half of fiscal 2027, anticipating a high-single-digit percentage increase, but noted that it continues to be "mindful of the uncertain geopolitical and macro-economic environment and its potential impact on consumer confidence."

"FY27 FX guidance has also been updated for recent FX movements, with Burberry now seeing a ~(GBP)20m tailwind to revenue and a broadly neutral impact to adj. EBIT vs. a ~(GBP)10m headwind to both previously. FY27 guidance is otherwise unchanged," analysts at Bernstein said in a quick-take note. "Burberry has successfully gone through its first brand revival chapter. Burberry Forward works. The ball is now in management's court to sustain the recovery, adding spice and oomph to it."

As of Friday midday, Burberry's shares were trading over 5% lower in London.

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