Burberry posts first sales growth in three years as turnaround gains momentum

Burberry reported a 5% rise in comparable retail sales to £455 million for the 13 weeks to 27 June, marking the first growth across all product categories in three years. The uplift was led by the Americas (+12%) and Greater China (+9%), with South Korea adding 11% and outerwear sales increasing double‑digits. CEO Joshua Schulman said the "Burberry Forward" strategy – refocusing on British heritage, trimming inventory and adjusting pricing – is delivering results and attracting Gen‑Z shoppers.

Sales in Europe, the Middle East, India and Africa fell 3% as the Iran‑related conflict dampened tourism, and the company noted that the region accounts for only about 2% of its business. Despite the positive numbers, the share price dropped around 7% after investors expressed disappointment with the outlook and the unchanged remuneration plan. CFO Kate Ferry highlighted limited exposure to the Middle‑East turmoil, while the company reaffirmed its ambition for continued revenue and margin growth.

Overall, the quarter shows a turnaround in momentum for the British luxury label, though geopolitical uncertainty and mixed investor sentiment remain challenges.