Burberry reports decline in Q1 FY26 results
Total retail revenue reached £433 million (US$587.21 million) in the 13 weeks to June 28, 2025, down 6% from £458 million (US$621.1 million) a year earlier. At constant exchange rates, the decline was a more modest 2%.
Comparable store sales fell by 1%, a marked improvement from the 21% drop reported in the same period last year. The company attributed the improvement to early momentum from its “Burberry Forward” transformation strategy.
Regionally, comparable sales grew by 4% in the Americas and by 1% in EMEIA, helped by a rise in local consumer spending. In contrast, sales in Greater China declined by 5%, with Mainland China down 4%, while Asia Pacific fell by 4%, weighed down by weak performance in Japan, partly offset by gains in South Korea.
Operationally, Burberry has continued to focus on simplification and cost control. Its cost-efficiency programme remains on track to deliver annualised savings of £80 million (US$108.5 million) by FY26.
Looking ahead, Burberry maintained a cautious outlook, citing a still-uncertain global environment. The company said it remains focused on reigniting brand desire in the first half, with the aim of returning to sustainable, profitable growth over time. Margin improvement will be driven by a continued emphasis on simplification, productivity, and cash flow discipline.
Exchange rates continue to pose a challenge, with the company expecting a year-on-year headwind of approximately £85 million (US$115.28 million) on revenue and £15 million (US$20.34 million) on adjusted operating profit for FY26, based on current FX rates.
CEO Joshua Schulman said: “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.”