Burberry Sees 6% Sales Dip in Q1, Gains Momentum in Americas

Burberry continues to decline. The British luxury goods company closed the first quarter of the current financial year with a turnover of 433 million pounds ($580 million), a decline of 6% (2% at constant exchange rates). Comparable store sales declined by only 1%, a significant improvement compared to the 21% drop recorded in the same period of the previous year.

Although the British fashion company has not yet managed to recover the ground lost in 2024, the first-quarter figures (period ending June 28) have been interpreted as a sign of stabilization. “The improvement in comparable sales, the strength of our key categories and the increase in brand desirability give us confidence in the path we are taking,“ said Joshua Schulman, the group’s CEO for the past two years.

By region, the Americas led the recovery with 4% comparable sales growth, supported by new customer acquisition. The Europe, Middle East, India and Africa region grew by 1%, driven by local spending, which offset the decline in tourism. In contrast, performance in Asia remained weak. Greater China fell by 5%, with a 4% decline in mainland China and Asia-Pacific, a region weighed down by Japan but partially offset by South Korea.

The online channel also continues to gain traction, with three consecutive quarters of growth, driven by a combination of improved assortment, unified styling and storytelling. “We are starting to see the first results of a transformation that is focused on simplifying, raising productivity and strengthening cash generation,“ Schulman emphasized.

Burberry increased sales in the Americas by 4% during the period

The group maintains its target of achieving £80 million in annual structural savings by the current year-end, of which it has already executed £24 million. In addition, it has warned that the effect of foreign exchange will be a significant burden in the year. The company estimates an adverse impact of £85 million in revenue and £15 million in adjusted operating profit if current rates are maintained.

Burberry also anticipates a mid double-digit decline in wholesale channel sales in the first half as part of its commercial restructuring. Planned capital expenditure remains at around £130 million. At the end of the quarter, the company had 227 company-owned stores, 137 concessions, 54 outlets and 31 franchises, excluding temporary stores.

The quarter also marked the arrival in stores of the fall 2025 collection, the first under the Burberry Forward strategic repositioning, with a more focused proposition, based on the brand’s recognizable visual codes and a more narrative design. According to the group, the collection has been well received by a broad base of luxury customers.

In parallel, the company has improved the visual merchandising in its points of sale, with new structures that increase product density and a scarf bar pilot, which is outperforming the network average. The goal is to roll out this new format in 200 stores by the end of the year.

Although the macroeconomic environment remains uncertain, the group insists that it is laying the foundations for a return to profitable and sustained growth. “Our priority this year is to consolidate brand desirability as a key requirement to return to sales growth; we will continue to invest in the first half of the year and expect the impact of the initiatives to become more visible as the year progresses,“ Schulman concluded. The company will present its half-year results on November 13th.