Comparable retail sales grew 5 percent compared to 1 percent year-on-year. At constant exchange rates, retail sales increased 4 percent, while retail space decreased revenue 1 percent. Currency movements provided a 1 per cent benefit, lifting reported retail revenue to £455 million.
Burberry reported a stronger Q1 FY27, with retail revenue up 5 percent year-on-year to £455 million (~$609 million) and like-for-like retail sales also up 5 percent, driven by strong demand in the Americas and China. Growth across all product categories, led by outerwear, improved customer acquisition and increased e-commerce supported performance. The company also raised its wholesale outlook for the first half.
“I am pleased with our progress in the first quarter and the momentum we are generating with Burberry Forward. For the first time in three years, we saw growth in our women's wear, men's wear, accessories and children's wear divisions, anchored by the outperformance of outerwear. Our strategy is working. We are attracting a wide range of luxury customers across product categories, channels and geographies, reinforcing my confidence in future opportunities,” he said Joshua Schulman, CEO of Burberry.
America and China lead regional performance
Regionally, the Americas recorded the strongest growth, with comparable retail sales increasing 12 percent, supported by local demand and the acquisition of a broad customer base. China rose 9 percent, driven by domestic demand and strong growth among Gen Z customers. Asia Pacific rose 3 percent, with South Korea advancing 11 percent, partially offset by a 2 percent drop in Japan due to lower inbound tourism from China. EMEIA fell 3 percent as geopolitical tensions in the Middle East and lower tourism spending weighed on demand. Excluding the Middle East, EMEIA decreased 1 percent, Burberry said in a press release.
Brand and product momentum strengthened
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 recorded double-digit growth, supported by demand for traditional rainwear, lightweight jackets and seasonal collections. Ready-to-wear also grew, led by knitwear, polos and swimsuits, while women's bags grew again.
The company said its pricing strategy continued to deliver value at different luxury price points, while customer growth remained strong, particularly among Gen Z consumers. Store productivity improved through customer service initiatives, improved visual merchandising and expanded category-focused displays, including the launch of scarf bars and 97 polo galleries ahead of Father's Day. E-commerce sales also posted mid-teens growth during the quarter.
Outlook for FY27 remains positive
Looking ahead, Burberry expects to deliver further revenue growth and margin expansion in fiscal 2027, while recognizing 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 expected to provide an estimated revenue tailwind of £20 million (~$27 million) with a broadly neutral effect on adjusted operating profit.
Fiber2Fashion News Desk (SG)
