The British icon exceeded analysts’ expectations in the third quarter of its fiscal year, which ended in December. Sales were strong worldwide, particularly in China, where Burberry’s more accessible repositioning is appealing to Gen Z. This good news has reconciled the stock market with luxury stocks.
Amid a gloomy outlook for the luxury sector due to Donald Trump’s threats to increase US tariffs, the publication of Burberry’s third-quarter results (ended December 27) brought a welcome ray of sunshine.
The first pleasant surprise was that the British icon achieved sales growth of 3% on a comparable basis (+1% on a reported basis) to £665 million (€764 million), while analysts had expected an average increase of +2%.
Strong growth in China
But observers were particularly pleased with Burberry’s performance in Greater China, a major market for the company that had been struggling in recent years. After returning to growth (+3%) in the second quarter, sales in China (estimated at around 30% of the total) rose by 6% on a comparable basis.
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Featured photo: © Burberry
