Burberry reported a stronger Q1 FY27, with retail revenue rising 5 per cent year on year to £455 million (~$609 million) and comparable retail sales also up 5 per cent, driven by robust demand in the Americas and China.
The growth across product categories, led by outerwear, improved customer acquisition and stronger e-commerce supported performance.
The company also raised its H1 wholesale outlook.
“I am pleased with our progress in the first quarter and the momentum we are building with Burberry Forward. For the first time in three years, we saw growth across our Womenswear, Menswear, Accessories and Childrenswear divisions, anchored by the outperformance of Outerwear. Our strategy is working. We are attracting a broad range of luxury customers across product categories, channels and geographies, reinforcing my confidence in the opportunities ahead,” said Joshua Schulman, CEO of Burberry.
Americas and China lead regional performance
Regionally, the Americas delivered the strongest growth, with comparable retail sales up 12 per cent, supported by local demand and broad-based customer acquisition. China rose 9 per cent, driven by domestic demand and strong growth among Gen Z customers. Asia Pacific increased 3 per cent, with South Korea advancing 11 per cent, partly offset by a 2 per cent decline in Japan due to lower inbound tourism from China. EMEIA fell 3 per cent as geopolitical tensions in the Middle East and weaker tourist spending weighed on demand. Excluding the Middle East, EMEIA declined 1 per cent, Burberry said in a press release.
Brand and product momentum strengthens
The company said its ‘Portraits of an Icon’ campaign helped attract new customers, with rainwear seeing a 19 per cent increase in first-time buyers. Outerwear posted double-digit growth, supported by demand for heritage rainwear, lightweight jackets and seasonal collections. Ready-to-wear also expanded, led by knitwear, polo shirts and swimwear, while women’s handbags returned to growth.
The company said its pricing strategy continued to deliver value across different luxury price tiers, while customer growth remained strong, particularly among Gen Z consumers. Store productivity improved through clienteling initiatives, enhanced visual merchandising and expanded category-focused displays, including the rollout of scarf bars and 97 polo galleries ahead of Father’s Day. E-commerce sales also recorded mid-teen growth during the quarter.
FY27 outlook remains positive
Looking ahead, Burberry expects to deliver further revenue growth and margin expansion in FY2027, while acknowledging continued geopolitical and macroeconomic uncertainty. The company raised its wholesale outlook and now expects wholesale revenue to grow by a high-single-digit percentage in the first half (H1) of FY27.
Capital expenditure is expected to be around £120 million (~$161 million), while exchange rate movements at current spot rates are forecast to provide an estimated £20 million (~$27 million) revenue tailwind with a broadly neutral effect on adjusted operating profit.
Fibre2Fashion News Desk (SG)
