Burberry has seen a 3% year-on-year growth in its comparable retail sales, reaching £665 million on a constant currency basis during the third quarter of fiscal 2026, which concluded on December 27, 2025.
The brand has reaffirmed its expectations for the entire fiscal year, projecting overall revenues to fall between 0% and 3%, with comparable retail sales anticipated to grow between -1% and 4%. Notably, Burberry highlighted an enhancement in revenue quality across all channels and regions, marking a return to a more streamlined markdown strategy.
"In this festive quarter, we maintained our forward momentum through the Burberry Forward strategy (https://www.vogue.com/article/our-best-days-are-ahead-burberry-ceo-reveals-turnaround-plan), achieving sequential improvements in comparable sales growth and a better quality of revenue across various channels and markets," stated CEO Joshua Schulman. "As we approach 170 years of Burberry, these results underscore the lasting strength of our iconic brand and bolster our confidence moving forward."
Key product categories, especially outerwear and scarves, have continued to excel in sales, both experiencing double-digit growth. To capitalize on these strong performers, Burberry has enhanced its retail productivity through improved visual merchandising, including the introduction of 190 Scarf Bars, with plans to reach 200 by the end of the calendar year. Schulman pointed out that younger customers are increasingly attracted to scarves as an entry point into the brand. Furthermore, there is growing momentum in the handbag and ready-to-wear sectors, particularly in knitwear. "The ongoing strength in our core outerwear line is now spilling over into accessories and ready-to-wear," Schulman remarked, highlighting the success of Burberry’s Equestrian Knight cashmere sweater during the holiday season.
The Greater China region, which accounts for approximately one-third of Burberry's business, emerged as the top-performing area, boasting a 6% increase in comparable store sales largely driven by local consumer spending. "For Burberry, China has always been a focal point. The Chinese customer has consistently been integral to our business model, representing a significant segment of our clientele," Schulman emphasized during the earnings call. "As we enter the second year of our Burberry Forward strategy, our team is genuinely connecting with customers across various age groups and demographics in major and secondary cities in China, engaging a wide luxury audience."
Sales within the rest of the Asia-Pacific region rose by 5%, supported by both tourist and local demand in South Korea. The number of Gen Z customers in China and the broader Asia-Pacific has seen impressive double-digit growth. In the Americas, comparable store sales increased by 2%, fueled by growth from both new and local customers, while sales in the EMEIA region (Europe, the Middle East, India, and Africa) remained flat, as gains from local spending were counterbalanced by declines in tourist purchases, particularly in the Middle East.
Analysts are expressing optimism regarding these results. “Burberry has delivered a positive surprise today,” remarked Luca Solca, a luxury goods analyst at Bernstein, who rated Burberry as "outperform" in his analysis. "These quarterly outcomes also arrive against a backdrop of a -3% headwind due to the non-recurrence of last year's significant markdowns. Looking ahead, Burberry anticipates a favorable customer response to its spring 2026 collection, which has led to notable improvements in sell-through rates."
During the conference call, Schulman, a seasoned retail professional who previously served as president at Bergdorf Goodman, was queried about the restructuring of Saks (https://www.vogue.com/article/saks-filed-for-bankruptcy-now-what) and its effects on Burberry. "Wholesale comprises only about 12% of our business, yet it holds considerable importance, especially as we navigate through a transformative period [...] because it serves as a platform for customers to discover Burberry," he explained. "Saks Fifth Avenue, Neiman Marcus, and Bergdorf Goodman are crucial pillars within the North American luxury market, and I carry a profound personal connection to this sector and these companies. We maintain confidence in the new leadership, and we hope to see a somewhat smaller yet stronger sector emerge."
