Burberry Q1: Strong performance in Americas and Greater China drives sales growth

British luxury brand Burberry Group plc (Burberry) has released its first quarter trading update for the 13 weeks ended June 27, 2026. The retail group achieved a 5 percent increase in retail revenue to 455 million pounds (613 million dollars), compared to 433 million pounds in the prior financial year period. Comparable retail sales grew by 5 percent year-over-year.

For the first time in three years, the London-based company experienced growth across its womenswear, menswear, accessories, and childrenswear divisions. The commercial turnaround was anchored by the outperformance of its core outerwear category.

Burberry chief executive officer, Joshua Schulman, stated: “Our strategy is working. We are attracting a broad range of luxury customers across product categories, channels and geographies, reinforcing my confidence in the opportunities ahead.” Schulman added that the group is successfully building momentum through its 'Burberry Forward' strategic programme.

Regional performance shows resilience in Americas and Greater China

In terms of regional development, comparable retail sales in the Americas grew by 12 percent, supported by domestic market demand and broad-based customer acquisition. Greater China registered a 9 percent increase in comparable sales, driven by local consumer demand and outsized growth among Gen Z customers.

The Asia Pacific region grew by 3 percent overall. Within this zone, South Korea remained a strong performer with 11 percent growth, driven by both domestic demand and tourist spending.

Conversely, performance in Japan declined by 2 percent, heavily impacted by a reduction in inbound tourists arriving from China. The Europe, Middle East, India, and Africa region (EMEIA), registered a 3 percent decline. The contraction reflects the ongoing impact of the Middle East conflict and lower aggregate tourist spend. Excluding the Middle East territory entirely, the EMEIA region recorded a minor decline of 1 percent.

Digital channels and retail productivity support full year outlook

Operational highlights during the first quarter included a 19 percent increase in new rainwear customers, spurred by the marketing campaign 'Portraits of an Icon'. The ready-to-wear category recorded solid growth in knitwear, polos, and swimwear, while the women's handbag division successfully returned to growth.

The e-commerce platform of the luxury brand continued to show good momentum, expanding by mid-teens during the 13 weeks. Physical retail productivity improved through enhanced visual merchandising, category destinations, and clienteling initiatives. By the end of the quarter, the group had established 97 polo galleries globally.

Management has updated its wholesale guidance for the first half of the financial year 2027. Wholesale revenue is now projected to grow by a high-single-digit percentage during H1 FY27 following positive responses from retail partners.

The total capital expenditure for the full year is projected to reach approximately 120 million pounds. The brand expects to achieve annualised cost savings of 100 million pounds by the financial year 2027, having already delivered 80 million pounds of that total during the financial year 2026.

The board confirmed that its overall financial guidance for the financial year 2027 remains unchanged. The group expects to deliver revenue growth and margin expansion in line with market expectations, while remaining mindful of the macro-economic environment.