However, the brand highlighted signs of early progress in its transformation journey under the Burberry Forward strategy. Comparable retail sales improved sequentially across all regions compared to the previous quarter, supported by increased brand desirability, outperformance in core categories such as outerwear and scarves, and improved customer conversion, Burberry said in a press release.
Burberry has reported a 6 per cent YoY drop in Q1 FY26 retail revenue to £433 million (~$580.22 million), though comparable sales fell just 1 per cent.
Sequential improvement was seen across regions, led by Americas at 4 per cent and EMEIA at 1 per cent.
Key initiatives under its Burberry Forward strategy—including brand campaigns, store upgrades, and cost efficiencies—show early signs of progress.
The comparable store sales rose 1 per cent, as strong local spending helped offset weaker tourist demand Europe, Middle East, India and Africa (EMEIA). Americas registered a 4 per cent increase, driven by growth in new customers. Greater China saw sales decline of 5 per cent, with Mainland China down 4 per cent. Asia Pacific saw decrease of 4 per cent due to a challenging performance in Japan, partially balanced by growth in South Korea.
Burberry has launched several initiatives during the quarter to reposition the brand and accelerate growth. A series of monthly campaigns—High Summer, Highgrove, and Festival—celebrated British summer traditions while targeting diverse customer segments.
The Autumn 2025 collection, rebalanced under the Burberry Forward vision, focused on fewer, iconic pieces that highlight recognisable brand codes.
In-store enhancements included updated visual merchandising and the introduction of a scarf bar pilot, which outperformed the broader store fleet, with 200 installations targeted by year-end. The online growth continued for the third consecutive quarter, supported by improved product mix, universal styling, and enhanced storytelling.
Organisational changes were implemented to foster collaboration and agility, and the cost efficiency programme remains on track to deliver £80 million in annualised savings by FY26.
Burberry acknowledged that the macroeconomic environment remains challenging and reiterated that it is still in the early stages of its business turnaround. The company plans to prioritise investment through the first half of fiscal 2026 (FY26), with an emphasis on reigniting brand desirability—a key driver for future top-line growth.
The company aims to deliver margin improvement in FY26 through continued simplification, productivity, and strong cash flow discipline, with a focus on returning to sustainable, profitable growth.
The company also introduced a new regional structure in FY26: Greater China included Mainland China, Hong Kong SAR, Macau SAR, and Taiwan; Asia Pacific comprised the rest of Asia including Japan, South Korea, Southeast Asia, Australia, and New Zealand.
“Over the past year, we have moved from stabilising the business to driving Burberry Forward with confidence. 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. Our Autumn 2025 collection is being well received by a broad range of luxury customers as it arrives in stores. Although the external environment remains challenging and we are still in the early stages of our transformation, we are encouraged by the initial progress we are starting to see,” said Joshua Schulman, chief executive officer (CEO) at Burberry.
Fibre2Fashion News Desk (SG)
