Burberry saw a 4% rise in comparable retail sales to £455 million, driven by growth in the Americas and Greater China despite regional challenges in EMEIA.

Burberry reported a 4% increase in comparable retail sales for the first quarter of its 2027 fiscal year, reaching £455 million on a constant currency basis. Growth was led by strong performance in the Americas and Greater China, though sales in the EMEIA region declined by 3% due to the impact of the US-Iran conflict and reduced tourist spending.

Regional Performance and Market Dynamics

The Americas saw a 12% climb in comparable retail sales, while Greater China grew by 9%, supported by local demand and Gen Z engagement. In the Asia-Pacific region, South Korea grew 11%, though Japan experienced a 2% decline linked to lower Chinese tourism. Burberry’s CFO, Kate Ferry, noted that the Middle East represents only 2% of the company's business, with the primary conflict-related impact being on tourism patterns.

Product Growth and Brand Strategy

For the first time in three years, Burberry recorded growth across all major divisions: womenswear, menswear, accessories, and childrenswear. Outerwear and scarves performed particularly well, with a 19% spike in rainwear sales following the 'Portraits of an Icon' campaign. CEO Joshua Schulman attributed the brand's momentum to the 'Burberry Forward' strategy, which emphasizes timeless British luxury and recognizable icons.

Licensing and Future Outlook

Licensing revenue remains a challenge, with the company working alongside beauty partner Coty to align marketing content with the brand's current direction. Looking ahead, Burberry plans to expand its retail footprint, including a new store in Milan. The company also expressed interest in the potential reinstatement of the UK's VAT refund scheme, noting that tourist business in London has fallen 50% since 2019.