Burberry reported a smaller-than-anticipated decline in comparable retail sales for its fiscal first quarter, offering investors an early glimpse of progress in the British luxury brand’s turnaround plan.
The company said on Friday that comparable store sales dropped 1% for the quarter ended June 28, outperforming analyst expectations of a 3% decline, according to a company-compiled consensus.
Shares in the trench-coat maker rose sharply following the announcement, gaining 6.45% by midday on the London Stock Exchange.
The stock is now up nearly 36% year-to-date, buoyed by growing investor confidence in the company’s new leadership and strategic direction.
Total retail revenue for the quarter stood at £433 million ($581 million), with Burberry noting sequential improvement in all regions.
The company’s quarterly revenue growth has sequentially improved for five quarters.
The latest update marks a modest but promising development for the brand, which has been under pressure amid a broader slowdown in global luxury spending.
Schulman’s brand reboot starts showing results
CEO Joshua Schulman, who joined Burberry a year ago from Michael Kors, has initiated a reboot of the brand with a focus on core categories such as outerwear and scarves, while leaning into Burberry’s British heritage identity.
“The improvement in our first-quarter comparable sales, strength in our core categories, and uptick in brand desirability give us conviction in the path ahead,” Schulman said in a statement, adding that the company’s Autumn 2025 collection was being “well received”.
The company has faced headwinds in recent years, issuing multiple profit warnings and struggling to maintain growth in key markets.
Schulman’s strategy includes plans to cut around 20% of the global workforce—a cost-cutting measure aimed at increasing operational efficiency and simplifying the organisational structure.
Burberry’s chief financial officer Kate Ferry noted that traffic remains subdued across the luxury sector, but pointed to green shoots in the crucial Chinese market.
Sales in China fell 5% during the quarter, an improvement from the 8% drop recorded in the prior three months.
US rebound boosts confidence
One of the bright spots in Burberry’s update came from the Americas, where sales rose 4% year-on-year.
This marked a turnaround from the 4% decline seen in the previous quarter and a 9% annual drop in the full 2025 fiscal year.
Schulman attributed the rebound to broader appeal across the luxury consumer spectrum in the US, from top-tier spenders to aspirational shoppers at high-traffic mall locations.
The US now accounts for nearly one-fifth of Burberry’s global business.
CEO Joshua Schulman said the growth indicated the “diversity of the luxury consumer that exists in that market,” from elite, high-spenders to high-traffic mall shoppers.
The US accounts for 19% of Burberry’s business.
Analysts give a vote of confidence to the turnaround strategy
Analysts responded positively to the update, with UBS noting that brand momentum appears to be accelerating.
“Burberry appears to have the right building blocks in place for the next stage of its turnaround strategy,” RBC Capital Markets’ Piral Dadhania and Richard Chamberlain said, noting that its quarterly revenue growth has sequentially improved for five quarters.
“A strategy refocus towards outerwear offers more authenticity in a less competitive product category,” they added.
Bernstein analysts were similarly encouraged, writing that “this is an encouraging sign that the self-help program is moving in the right direction,” and said further gains may follow as the company refines its marketing approach and product strategy.
As Schulman completes his first year at the helm, the mood around Burberry appears to be cautiously optimistic.
While challenges remain—particularly in China and Europe—the early signs of recovery and investor response suggest that the brand’s attempt to course-correct may be gaining traction.
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