Burberry Q1 sales grow on US and China demand

Burberry reported retail revenue of £455 million for the 13 weeks to 27 June, a 5% increase compared with the same period a year earlier. Comparable retail sales also rose 5%, indicating underlying improvement across the store network. The performance marks a period of renewed growth as the company continues to implement its turnaround strategy.

The improvement was not uniform across regions, but the overall sales advance allowed management to reaffirm its expectations for full‑year revenue growth and margin expansion. The figures provide a snapshot of how shifts in regional demand and product focus are shaping the brand’s recovery efforts.

Growth was concentrated in Burberry’s two strategic markets, the Americas and Greater China. Sales in the Americas rose 12% year‑on‑year in the quarter, making the region a key driver of the group’s top‑line expansion. Greater China sales increased 9%, underscoring the importance of that market to the company’s turnaround.

Management highlighted strong demand from Gen Z consumers in China as a support for the recent momentum. This demographic contributed to higher engagement with the brand, helping to offset weaker trends in other regions. Together, the Americas and Greater China provided the bulk of the company’s quarterly growth.

Product performance also played a central role, with outerwear delivering double‑digit growth. Raincoats, lightweight jackets and scarves were called out as particularly strong categories. This focus aligns with Burberry’s heritage positioning in outerwear.

The "Portraits of an Icon" campaign supported this performance by attracting new rainwear customers. By drawing fresh attention to its outerwear range, the campaign contributed to higher sales in a core product area. This helped underpin the broader improvement in retail revenue during the quarter.

In contrast to the gains in the Americas and Greater China, sales in Europe, the Middle East and Africa fell 3% year‑on‑year. Management linked the decline to lower tourist spending associated with the Middle East conflict. The regional weakness illustrates the uneven nature of demand across Burberry’s global footprint.

Beyond regional factors, management cautioned that geopolitical and macroeconomic uncertainty could weigh on consumer confidence. These conditions are seen as potential headwinds even as the company reports signs of progress in its core markets and categories.

Reflecting the recent trading performance, Burberry raised its first‑half wholesale guidance to high‑single‑digit growth. The company simultaneously reiterated its expectations for full‑year revenue growth and margin expansion, indicating continued confidence in the trajectory of the turnaround plan.

Burberry is targeting around £100 million of annualised cost savings by FY27, with approximately £80 million already delivered in FY26. These efficiencies are intended to support profitability as the group invests in product, marketing and key regions. Together, the updated guidance and cost‑saving programme frame the next stage of the brand’s recovery, set against ongoing regional and macroeconomic challenges.