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For its first quarter of fiscal year 2026\/2027, which ended in late June, Burberry reported a 5<\/strong>% increase in like-for-like sales<\/b>. This performance marks a significant improvement over the sharp declines recorded last year and exceeds analysts\u2019 consensus estimates. Analysts, particularly at Barclays, had anticipated a decline of approximately 4% in comparable sales<\/b>, while Jefferies had predicted a gradual but cautious improvement.<\/p>\n <\/p>\n Retail revenue thus reached 455 million pounds<\/b>, compared with 433 million a year earlier, driven by a recovery in comparable sales and a more favorable exchange rate.<\/p>\n <\/p>\n 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.<\/p>\n <\/p>\n <\/p>\n Since taking the helm at Burberry, Joshua Schulman<\/strong> has refocused the strategy on the brand\u2019s 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.<\/p>\n <\/p>\n Growth was driven in particular by the Americas<\/b>, where comparable sales rose by 12%<\/b>, while Greater China<\/b> also returned to growth with +9%<\/b>\u2014an encouraging sign after several challenging quarters. Asia-Pacific grew by 3%<\/b>, while the EMEIA<\/b> region declined by 3%<\/b>, 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%<\/b>.<\/p>\n <\/p>\n <\/p>\n These results nonetheless represent an encouraging sign for the luxury industry, just days before LVMH, Kering, and Herm\u00e8s are set to report their earnings. Investors see this as confirmation that Burberry is gradually regaining stability after a particularly difficult period.<\/p>\n <\/p>\n 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\u2019s recovery.<\/p>\n <\/p>\n <\/p>\nThe turnaround plan is beginning to take effect<\/h2>\n
A positive sign for the luxury sector<\/h2>\n