British luxury fashion house Burberry has reported a 1% decline in comparable store sales, with retail revenue at £433m ($580.3m) in the first quarter (Q1) of the fiscal year 2026.
The retail revenue was down 6% at reported exchange rates and 2% at constant exchange rates.
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Its comparable retail sales “improved sequentially” across all regions.
Burberry CEO Joshua Schulman stated: “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 gives us conviction in the path ahead.”
In Q1 FY26, the Americas region experienced 4% growth, supported by new customer growth. Europe, the Middle East, India and Africa saw a 1% increase, with local spend offsetting tourist declines.
However, Greater China faced a 5% decrease, with Mainland China down 4%.
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By GlobalDataThe Asia Pacific region was also down 4%, with a “challenging performance” in Japan, partially offset by growth in South Korea.
During the quarter, the brand saw stronger “desirability and outperformance” in categories such as outerwear and scarves, along with improved conversion rates.
The company’s rebalanced Autumn 25 collection attracted a broad range of luxury customers.
Schulman added: “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.”
Online sales continued to gain momentum for the third consecutive quarter, driven by a stronger product mix and effective storytelling.
Burberry’s cost-saving programme is progressing as planned, with expectations to achieve annualised savings of £80m by the end of FY26.
Burberry stated: “We are still in the early stages of our turnaround, and the macroeconomic environment remains uncertain.”
As of 27 June 2025, the brand anticipates a negative impact of £85m on revenue and £15m on adjusted operating profit for FY26 due to current foreign exchange rates.
In H1 FY26, the company expects wholesale to decline by a mid-teens percentage.
In May 2025, it revealed plans to eliminate 1,700 positions globally by 2027 as part of an accelerated cost-cutting initiative.
As of 28 June 2025, Burberry operates a global retail network of 227 retail stores, 137 concessions, 54 outlets and 31 franchise stores, not including pop-ups.
