On July 18, British luxury brand Burberry announced its financial results for the first quarter of fiscal year 2026 (April–June 2025), reporting early signs of progress in its brand turnaround strategy. Comparable store sales declined by just 1% year-on-year, a notable improvement from the 21% drop recorded in the same period last year, signaling recovery across key regions.
Retail revenue fell by 6% on a reported basis to £433 million. At constant exchange rates, the decline was limited to 2%, indicating steady progress despite the ongoing impact of currency fluctuations. Store footprint was also down 1% compared to the previous year.
By region, EMEIA (Europe, Middle East, India, and Africa) posted a 1% increase in comparable store sales, as increased local spending offset reduced tourist activity. The Americas saw a 4% rise, driven by growth in new customer acquisition. In contrast, Greater China (Mainland China, Hong Kong, Macau, and Taiwan) recorded a 5% decline, with Mainland China down 4%. The Asia Pacific region also fell by 4%, with Japan’s underperformance partially offset by steady growth in South Korea.
During the quarter, Burberry launched several initiatives aimed at enhancing brand equity. Campaigns such as “High Summer,” “Highgrove,” and “Festival,” which celebrate British summertime traditions, were used to strengthen brand storytelling. The Autumn 2025 collection, the first under the “Burberry Forward” strategy, showcased a rebalanced product offering focused on recognizable brand codes and fewer, more impactful items, appealing to a broader range of luxury consumers.
In stores, new fixtures were installed to enhance product density, and a test rollout of the scarf bar delivered promising results. Online sales grew for the third consecutive quarter, supported by a strengthened product mix and consistent visual storytelling. In terms of category performance, lightweight jackets with signature check trims emerged as a bestseller, while footwear, including rain boots and pool slides, received positive responses.
On the operational front, Burberry’s cost efficiency program, targeting £80 million in annualized savings, continues to progress steadily. The company is also undergoing structural reforms, including a reduction of around 20% of its workforce (approximately 1,700 roles). Reflecting on the past year, CEO Joshua Schulman commented:
“Over the past year, we have moved from stabilising the business to driving Burberry Forward with confidence. The improvement in our first quarter comparable sales, strength in our core categories, and uptick in brand desirability gives us conviction in the path ahead. Our Autumn 2025 collection is being well received by a broad range of luxury customers as it arrives in stores. Although the external environment remains challenging and we are still in the early stages of our transformation, we are encouraged by the initial progress we are starting to see.”
In the Americas, Burberry employed a two-tiered approach: high-spending clients were invited to exclusive events such as one held at Flamingo Estate in Los Angeles, while wider audiences were engaged through mall-based festival campaigns featuring live DJ sets. This strategy enabled the brand to reach a broader luxury consumer base.
Meanwhile, China—accounting for roughly 30% of Burberry’s global revenue—continues to face challenges. In Q1, Greater China saw a 5% decline overall, with a 4% drop in Mainland China. However, Burberry remains focused on recovery efforts in the region, aiming to improve conversion rates through enhanced brand desirability and optimized product offerings. The company positions Greater China as a key strategic market, with ongoing initiatives expected to continue.
Organizational changes are also underway. Claudia Kim (Asia Pacific), Frank van Loon (EMEIA), Josie Zhang (Greater China), and Laura Dubin-Wander (Americas) have joined Burberry’s executive committee, participating in key decisions on strategy and operations. In addition, the company has eliminated the previously vacant Chief Commercial Officer role, with regional presidents now reporting directly to Schulman.
Burberry is scheduled to announce its interim results for the first half of FY2026 (ending September 27, 2025) on Thursday, November 13, 2025.
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