Burberry’s comparable retail sales increased 4% on a constant currency basis to £455 million in the first quarter of its 2027 fiscal year.
However, sales across Europe, the Middle East, India and Africa (EMEIA) fell 3%, hit by the ongoing impact of the US-Iran conflict and lower tourist spend. Excluding the Middle East, EMEIA declined 1%. Burberry’s stock price dipped 3.42% in early morning trading.
On the earnings call, CFO Kate Ferry said Burberry was less exposed to direct business impacts from conflict in the Middle East than some competitors, noting that the region comprises only 2% of its business. “Really, the impact to date is [on] tourism, both within the region and Asians coming over to Europe,” she added.
Despite the geopolitical environment, the company said it expects to make “further progress on its financial ambitions” in 2027, including delivering revenue growth and an improved profit margin. It is forecasting high-single-digit growth in wholesale revenue for the first half of the year.
CEO Joshua Schulman celebrates his second anniversary at the company today. “We’re really looking forward, because we believe that the best is yet to come,” he said on Friday’s earnings call. “As we’ve rebalanced our brand expression around timeless British luxury with this drumbeat of activities, we see that we have the most opportunity where we have the most authenticity.”
Comparable retail sales climbed 12% in the Americas, bolstered by local demand and a broad customer acquisition strategy; 9% in Greater China, also reliant on local demand and exceptional Gen Z growth; and 3% in Asia-Pacific, where South Korea grew 11% thanks to local and foreign spending, and Japan dropped 2% due to declining Chinese tourism.
Schulman described Greater China and the Americas as “must-win” markets, where Burberry’s revamped branding landed well. Additionally, he highlighted US tourists vacationing in Europe and visiting Burberry flagships, driven by the halo effect of investment in US marketing and “client-centric activities”.
For the first time in three years, the brand reported growth across womenswear, menswear, accessories, and childrenswear divisions. Outerwear and scarves remain hero categories, up double digits thanks to strong demand for heritage rainwear, lightweight jackets and other seasonal product. The Tim Walker-shot Portraits of an Icon campaign — centered on Burberry’s signature trench coat and released in March — delivered a 19% spike in rainwear sales.
These quintessentially British campaigns were introduced as part of the turnaround strategy for Burberry, following a string of losses between 2023 and 2024. Schulman pinpointed other examples, including campaigns around British music, the recent World Cup-adjacent A Good Sport campaign, and the Fall/Winter 2026 show on London Bridge.
“One of the pillars of our ‘Burberry Forward’ strategy is to focus the brand expression on timeless British luxury, and Britishness is at our core,” said Schulman. “It was really important in the first phases of our transformation to focus on recognizable icons and views of Britishness that resonate around the world, and so this is very core to who we are and our storytelling.”
The brand also highlighted growth in knitwear, polos, and swimwear, as well as growth revival in women’s handbags, which Schulman attributed to a better pricing architecture. Gen Z consumers, he added, have generated traction in the handbag category. Several bestsellers came from the brand’s vintage check range, which includes classic designs — a vanity case, tote bags, the Note bag, and new additions, such as the Cotswolds bag. The latter group’s price range spans approximately £1,500 to £2,000. Gen Z customer growth was up double digits across the board.
Licensing remains a pain point for the brand, with revenues down. Currently, Coty is the licensee of Burberry beauty products following a deal inked in 2017. Schulman said Burberry is working with Coty’s executive chair and interim CEO Markus Strobel, with both teams developing marketing content and a pipeline of projects together.
