Burberry’s comparable retail sales rose 4% on a constant currency basis, reaching £455 million in the first quarter of its 2027 fiscal year.

However, sales across Europe, the Middle East, India, and Africa (EMEIA) fell by 3%, impacted by the ongoing US-Iran conflict and lower tourist spending. Excluding the Middle East, EMEIA declined by 1%. Burberry’s stock price dropped 3.42% in early morning trading.

During the earnings call, CFO Kate Ferry noted that Burberry is less exposed to direct business impacts from the Middle East conflict than some competitors, as the region accounts for only 2% of its business. “Really, the impact so far is on tourism, both within the region and from Asians traveling to Europe,” she added.

Despite the geopolitical challenges, the company expects to make “further progress on its financial goals” in 2027, including revenue growth and improved profit margins. It forecasts high-single-digit growth in wholesale revenue for the first half of the year.

CEO Joshua Schulman celebrates his second anniversary with the company today. “We’re really looking forward, because we believe the best is yet to come,” he said on Friday’s earnings call. “As we’ve rebalanced our brand around timeless British luxury with this steady stream of activities, we see the most opportunity where we have the most authenticity.”

Comparable retail sales grew 12% in the Americas, driven by local demand and a broad customer acquisition strategy; 9% in Greater China, also supported by local demand and strong Gen Z growth; and 3% in Asia-Pacific, where South Korea rose 11% thanks to local and foreign spending, while Japan dropped 2% due to a decline in Chinese tourism.

Schulman described Greater China and the Americas as “must-win” markets, where Burberry’s refreshed branding has been well received. He also highlighted US tourists vacationing in Europe and visiting Burberry flagship stores, boosted by the halo effect of US marketing investments and “client-centric activities.”

For the first time in three years, the brand reported growth across womenswear, menswear, accessories, and childrenswear. Outerwear and scarves remain key categories, with double-digit growth driven by strong demand for heritage rainwear, lightweight jackets, and other seasonal products. The Tim Walker-shot “Portraits of an Icon” campaign, centered on Burberry’s signature trench coat and released in March, led to a 19% increase in rainwear sales.

These quintessentially British campaigns are part of Burberry’s turnaround strategy, following a series of losses between 2023 and 2024. Schulman pointed to other examples, including campaigns around British music, the recent World Cup-related “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 on timeless British luxury, and Britishness is at our core,” said Schulman. “In the early stages of our transformation, it was crucial to highlight recognizable icons and views of Britishness that resonate globally. This is central to who we are and how we tell our story.”

The brand also noted growth in knitwear, polos, and swimwear, as well as a revival in women’s handbags, which Schulman attributed to better pricing. He added that Gen Z consumers have driven interest in the handbag category. Several bestsellers came from the brand’s vintage check range, which includes classic designs like a vanity case, tote bags, the Note bag, and new additions such as the Cotswolds bag. Prices for the latter range from about £1,500 to £2,000. Gen Z customer growth was up double digits across all categories.

Licensing remains a challenge, with revenues declining. Currently, Coty is the licensee for Burberry beauty products, following a deal signed in 2017.Schulman said Burberry is working closely with Coty’s executive chair and interim CEO, Markus Strobel. The two teams are developing marketing content and planning future projects together.

“Part of that is due to the time it takes for the ‘Burberry Forward’ brand identity to show up across our licensed categories,” Schulman explained. “That said, the teams are working constructively to move the brand forward with creativity, linking our beauty brand expression to the successful ‘Burberry Forward’ identity you now see across the business.”

Looking ahead, Burberry said it plans to engage with the incoming UK government—expected to be led by Labour MP Andy Burnham—and continue making a positive contribution to the UK economy. Schulman specifically hopes to see the return of the VAT refund scheme, which was removed in 2021. He told journalists that Burberry’s tourist business in London has dropped 50% since 2019.

The company will open a new store this year on Milan’s luxury shopping street, Via Montenapoleone. It will join a group of flagship stores across Europe, including those on London’s Bond Street and Sloane Street, and Rue Saint-Honoré in Paris. As of June 27, 2026, Burberry operated 413 directly owned stores worldwide: 224 retail stores, 135 concessions, and 54 outlets.

“We are attracting a wide range of luxury customers across product categories, channels, and regions, which strengthens my confidence in the opportunities ahead,” Schulman said in a statement.

Frequently Asked Questions
Here is a list of FAQs about Burberrys firstquarter revenue increase covering beginner to advanced perspectives

BeginnerLevel Questions

1 What happened with Burberrys revenue in the first quarter
Burberrys revenue for the first quarter went up by 4 compared to the same time last year

2 What made Burberrys sales go up
The main reasons were very strong sales in China and the United States People in those countries bought more Burberry products

3 Is a 4 increase considered good for a luxury brand
Yes in the current economic climate a 4 increase is seen as a solid result especially because it was driven by two of the biggest luxury markets in the world

4 Does this mean Burberry is doing better than other luxury brands
It depends Some luxury brands are struggling right now so Burberrys growth in China and the US sets it apart However other brands may have grown faster

IntermediateLevel Questions

5 Which specific products or categories drove the growth in China and the US
While Burberry didnt break it down by product in this specific report analysts pointed to strong demand for readytowear clothing and leather goods in both markets

6 Was the growth in China and the US equal or was one market stronger
The report highlighted strong performance in both but Chinas rebound was particularly notable because the luxury market there had been slow The US also showed consistent demand

7 Did Burberrys revenue increase in other regions like Europe
The report focused on China and the US as the main drivers Other regions may have been flat or had slower growth which is common for many luxury brands right now

8 How does this compare to Burberrys performance in the previous quarter
This 4 increase is an improvement over the previous quarter which saw a slight decline It signals that Burberrys new strategy and product lines are starting to work

AdvancedLevel Questions

9 What does this 4 revenue growth mean for Burberrys overall turnaround strategy
Its a positive early sign Burberry has been trying to move more upmarket under new leadership Strong sales in China and the US suggest that their higherpriced