LONDON – Burberry’s retail revenue rose 5 percent to 455 million pounds in the first fiscal quarter, bolstered by Gen Z and customers’ appetite for trench coats, scarves and handbags, the latter of which returned to growth in the three months ended June 27.
Retail sales grew 4 percent at constant exchange, with space down 1 percent in the period. Currency represented a 1 percent tailwind, the company said.
Comparable retail sales were up 5 percent compared with minus 1 percent in the corresponding period last year, with the Americas showing the most growth. The region rose 12 percent, followed by Greater China, where sales were up 9 percent. Asia-Pacific climbed 3 percent.
The only region where growth shrank was EMEIA, or Europe, the Middle East, India and Africa. Burberry said the decline reflected the impact of the conflict in the Middle East. Stripping that out, sales fell 1 percent.
The brand said it saw “outsized growth” in Gen Z customers in Greater China. The cohort, born between 1997 and 2012, also led overall customer growth in the quarter, according to Burberry.
Burberry CEO Josh Schulman said he was pleased with the progress in the quarter, “and the momentum we are building with Burberry Forward.” He said that for the first time in three years the company saw growth across the women’s, men’s, accessories and children’s categories, “anchored by the outperformance of outerwear.”
Schulman added: “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.”
Burberry added that its Portraits of an Icon campaign, which broke earlier this year and focused on the trench, spurred a 19 percent increase in new rainwear customers.
Overall sales in the outerwear category were up in the double digits, with “strong demand” across heritage rainwear, lightweight jackets and seasonal products. In ready-to-wear, knitwear, polos and swimwear also grew while women’s handbags returned to growth and are attracting new customers, Burberry said.
Burberry said it was increasing its first-half wholesale guidance, following a “positive response” from store partners.
The brand continues to expand with plans to open a new Milan flagship on via Montenapoleone in the second half of 2027. The four-floor flagship is currently under restoration, with the building wrapped in hoarding featuring Burberry’s signature trench.
