Overview

Burberry reported first‑quarter (13 weeks to 27 June 2026) comparable retail sales increased 5% year‑on‑year to £455 million at reported exchange rates (4% at constant currency), in line with market expectations.

Regional Performance

  • Americas: sales grew 12% driven by local demand and broad customer acquisition.
  • Greater China: sales rose 9% supported by strong Gen‑Z demand.
  • Asia‑Pacific: overall growth 3%, with South Korea up 11% offset by Japan down 2% due to weaker inbound tourism from China.
  • EMEIA: sales declined 3%; excluding the Middle East the decline was 1%, attributed to the ongoing Middle East conflict reducing tourist spending.

Share Price Reaction

Burberry’s shares fell nearly 6% in London trading by 08:33 GMT following the announcement.

Management Commentary

CEO Joshua Schulman noted that this quarter marked the first time in three years that all four divisions returned to growth, highlighting double‑digit growth in the Outerwear division.

Analyst Commentary

Morgan Stanley analysts said the company delivered continued like‑for‑like sales despite a tougher comparison base and increased Middle East headwinds, and they expect the turnaround strategy to generate solid like‑for‑like sales in the second half and beyond.

Guidance and Outlook

  • Wholesale guidance for the first half of FY27 was raised, with the company now expecting high‑single‑digit percentage growth.
  • For the full year, Burberry reiterated its expectations for revenue growth and margin expansion, consistent with prior guidance, while remaining mindful of uncertain geopolitical and macro‑economic conditions that could affect consumer confidence.

Financial Targets

  • Annualised cost‑saving target of £100 million by FY27, of which £80 million had already been realised in FY26.
  • Capital expenditure for the year is projected at approximately £120 million.
  • Adjusted effective tax rate is expected to be in the range of 27%–30%.
  • Currency effects are forecast to provide a roughly £20 million tailwind to revenue, with a broadly neutral impact on adjusted operating profit.