In the third quarter of fiscal 2026, ending December 27, 2025, Burberry’s comparable retail sales rose 3% year-on-year to £665 million, based on constant currency. The company maintained its full-year outlook, expecting revenue to decline between 0% and 3%, with comparable retail sales growth projected between -1% and 4%. Burberry noted an improved quality of revenue across all channels and regions, attributing this to a return to a shorter and less aggressive markdown strategy.

CEO Joshua Schulman stated, “During the festive quarter, we continued to build momentum with our Burberry Forward strategy, achieving sequential improvement in comparable sales growth and better revenue quality across channels and geographies. As we approach Burberry’s 170th year, these results highlight the enduring strength of our iconic brand and give us confidence for the future.”

Key categories like outerwear and scarves performed strongly, both seeing double-digit growth. To boost these areas, Burberry enhanced retail productivity through improved visual merchandising, including the introduction of 190 Scarf Bars, with plans to reach 200 by year-end. Schulman observed that younger customers are increasingly drawn to scarves as an entry point into the brand. Momentum is also building in handbags and ready-to-wear, especially knitwear. Schulman emphasized the success of the Equestrian Knight cashmere sweater during the festive period, noting, “The continued strength in our core outerwear category is now extending into accessories and ready-to-wear.”

Greater China, representing about one-third of Burberry’s business, was the top-performing region, with comparable store sales up 6%, driven by local spending. Schulman commented, “For Burberry, China never went away. The Chinese customer has always been a focus and remains a crucial part of our customer base. As we enter the second year of the Burberry Forward strategy, our team is effectively connecting with customers across ages and demographics in both major and secondary cities in China, reaching a broad luxury audience.”

Sales in the rest of Asia-Pacific increased 5%, fueled by tourist demand and strong local spending in South Korea. Gen Z customers in China and Asia-Pacific grew at a double-digit rate. In the Americas, comparable store sales rose 2%, supported by new and local customer growth. Meanwhile, sales in EMEIA (Europe, the Middle East, India, and Africa) remained flat, as increased local spending was offset by declines in tourist purchases, particularly in the Middle East.

Analysts responded positively to the results. Luca Solca, a Bernstein luxury goods analyst, noted, “Burberry has produced a positive surprise this morning,” rating the stock as “outperform.” He added, “The quarter’s results are especially notable given a -3% headwind from not repeating last year’s significant markdowns. Looking ahead, Burberry points to strong customer response to its spring 2026 collection, which has driven significant sell-through improvement.”

During the earnings call, Schulman—a retail veteran and former president of Bergdorf Goodman—was asked about the impact of Saks’ restructuring on Burberry. He responded, “Wholesale accounts for only about 12% of our business, but it remains important, especially during our transformation, as it helps people discover Burberry. Saks Fifth Avenue, Neiman Marcus, and Bergdorf Goodman are key pillars in the North American luxury sector, and I have deep personal ties to these companies. We are confident in their future.”The new leadership is in place, and we hope this will lead to a more streamlined and resilient sector.

Frequently Asked Questions
Of course Here is a list of FAQs about Burberrys thirdquarter sales increase designed to be clear and conversational

Beginner General Questions

Q I saw a headline that Burberrys sales went up What exactly happened
A For the 13week period ending in December 2023 Burberry reported that its total retail revenue grew by 3 compared to the same period the year before

Q Is a 3 increase good news for Burberry
A In the context of the global luxury market a 3 increase is considered modest and slightly disappointing While its still growth it fell short of analyst expectations and signals the brand is facing challenges particularly in key markets

Q Why is this news important
A Its a key health check for the company Sales figures are the most direct measure of consumer demand for a brand This result provides insight into the success of Burberrys new creative direction and its resilience in a slowing economy

Q Where did Burberry see the most growth
A The growth was driven by sales in Mainland China which saw a strong recovery However this was offset by a significant slowdown in other regions

Advanced Detailed Questions

Q If sales grew overall what were the main problems or weak spots
A The main weak spots were a sharp slowdown in the Americas and in the EMEIA region Demand in these markets softened considerably dragging down the overall growth rate

Q How does this result affect Burberrys fullyear outlook
A Following this report Burberry issued a profit warning The company stated that if the current trend of weak demand continues it is unlikely to meet its previous fullyear profit forecasts which has concerned investors

Q What does this say about the luxury market as a whole
A Burberrys performance is seen as a bellwether for the broader accessible luxury segment It suggests that consumers are becoming more cautious with discretionary spending potentially prioritizing ultrahighend brands or cutting back entirely in a tough economic climate

Q How is Burberrys new designer Daniel Lee connected to these results