The British fashion house Burberry reported an encouraging first quarter. Comparable sales returned to growth—a first in nearly three years—and exceeded analysts’ expectations. This reinforces the turnaround strategy initiated by CEO Joshua Schulman, which focuses on the brand’s iconic products.
Results exceed expectations
For its first quarter of fiscal year 2026/2027, which ended in late June, Burberry reported a 5% increase in like-for-like sales. This performance marks a significant improvement over the sharp declines recorded last year and exceeds analysts’ consensus estimates. Analysts, particularly at Barclays, had anticipated a decline of approximately 4% in comparable sales, while Jefferies had predicted a gradual but cautious improvement.
Retail revenue thus reached 455 million pounds, compared with 433 million a year earlier, driven by a recovery in comparable sales and a more favorable exchange rate.
The group emphasizes that this growth is driven by increased brand desirability, higher in-store conversion rates, and strong performance across its core product categories, notably trench coats and scarves.
The turnaround plan is beginning to take effect
Since taking the helm at Burberry, Joshua Schulman has refocused the strategy on the brand’s British DNA, emphasizing iconic pieces rather than a overly rapid move upmarket. The initial results appear positive, with progress observed in several regions around the world and more favorable sales momentum.
Growth was driven in particular by the Americas, where comparable sales rose by 12%, while Greater China also returned to growth with +9%—an encouraging sign after several challenging quarters. Asia-Pacific grew by 3%, while the EMEIA region declined by 3%, weighed down by a drop in luxury tourism in the Middle East due to the regional conflict. Excluding the Middle East, the decline was only 1%.
A positive sign for the luxury sector
These results nonetheless represent an encouraging sign for the luxury industry, just days before LVMH, Kering, and Hermès are set to report their earnings. Investors see this as confirmation that Burberry is gradually regaining stability after a particularly difficult period.
On the stock market, however, investors reacted cautiously to these results: around 10:30 a.m., Burberry shares were down 6.6% in London, a sign that the market is now waiting for lasting confirmation of the British fashion house’s recovery.
Read also > Richemont gets off to a strong start to the fiscal year with a 20% increase in sales in the first quarter
Featured photo : © Burberry
