Burberry lifts wholesale guidance as Q1 sales rise 5%
Burberry’s first-quarter comparable sales rose 5% to £455m, driven by the Americas and China, prompting the luxury group to raise its wholesale outlook.
Burberry posted a 5% increase in comparable retail sales for the first quarter, generating £455m ($612.8m) in revenue over the 13 weeks to 27 June. On a constant currency basis, sales rose 4%, with foreign exchange movements contributing a 1% tailwind, partially offset by a 1% drag from reduced store space.
The results signal a broadening recovery for the British luxury brand. "For the first time in three years, we saw growth across our womenswear, menswear, accessories and childrenswear divisions, anchored by the outperformance of outerwear," said Chief Executive Joshua Schulman.
Regional performance was heavily skewed toward the Americas and Greater China, offering investors a clear picture of where luxury demand remains resilient. North American comparable sales jumped 12% on local demand and new customer acquisition, while Greater China grew 9% on an expanding base of Gen Z consumers. The EMEIA region contracted by 3% due to the Middle East conflict and weaker tourist spending, though this decline narrowed to 1% when excluding the Middle East.
Elsewhere in Asia Pacific, sales climbed a more modest 3%. This masked a sharp divergence between markets: South Korea surged 11% on robust domestic and tourist spending, while Japan slipped 2% as Chinese visitor numbers declined. For market professionals, this highlights the shifting dynamics of regional tourism flows.
Product trends underpinned the quarterly beat. Outerwear delivered double-digit growth, supported by heritage rainwear and seasonal jackets, while ready-to-wear items also saw gains. Women's handbags returned to growth after a period of decline, and digital sales advanced at a mid-teens pace.
Looking forward, Burberry lifted its wholesale guidance for the first half of fiscal 2027. The company cited a positive response from trading partners, a critical indicator for investors monitoring the health of the brand's wholesale network. Management reiterated its full-year targets for revenue growth and margin expansion.
"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 said. The group cautioned that an unpredictable geopolitical and economic backdrop could still weigh on consumer sentiment.
