The Tamesis
In the third quarter of fiscal 2026, which ended on December 27, 2025, Burberry’s comparable retail sales increased by 3% year-on-year to 665 million pounds on a constant currency basis.
The company confirmed its full-year outlook, projecting a revenue decline of 0% to 3% and comparable retail sales growth of -1% to 4%. Burberry said the quality of its revenue had improved across all channels and regions as it returned to a strategy of shorter, shallower price cuts.
“During the festive period, we continued to build momentum through our Burberry Forward strategy, delivering sequential improvements in comparable sales growth and improving the quality of revenue across channels and regions,” CEO Joshua Schulman said in a statement. “In Burberry’s 170th year, these results once again demonstrate the enduring power of our iconic brand and give us confidence in the path ahead.”
Key categories such as outerwear and scarves continued to perform well in sales, both achieving double-digit growth. To drive the development of these categories, Burberry is improving retail productivity through enhanced visual merchandising, including the launch of 190 scarf bars, which is expected to reach 200 by the end of the year. Shulman noted that younger customers are attracted to scarves as an entry point into the brand. Momentum is also starting to build in the handbags and ready-to-wear categories, especially knitwear. “The continued strength of our core outerwear category now extends into accessories and ready-to-wear,” Schulman said, highlighting the success of Burberry’s equestrian cashmere sweater during the festive season.
Greater China, which accounts for about a third of Burberry’s business, was the best-performing region, with comparable store sales rising 6%, driven by local spending. “For Burberry, China has never disappeared. Chinese customers have always been our focus and a very important part of our customer base,” Schulman said on the earnings call. “As we enter the second year of our Burberry Forward strategy, our teams are truly connecting with customers across all age groups and demographics [China’s] Large cities and tier-2 cities, we are reaching a broad luxury audience. “
Sales in the Rest of Asia Pacific region increased 5%, driven by tourist demand and local demand in South Korea. The number of Gen Z customers in China and Asia Pacific grew by double digits. Meanwhile, comparable store sales in the Americas increased 2% due to growth in new and local customers, while sales in EMEIA (Europe, Middle East, India and Africa) were flat as higher local spending was offset by lower tourist purchases, particularly in the Middle East.
Analysts were encouraged by the results. “Burberry delivered a positive surprise this morning,” Bernstein luxury goods analyst Luca Solca, who has an “outperform” rating on Burberry, said in a note. “Results for the quarter also come against the backdrop of -3% headwinds due to non-recurrence. [last year’s] Significant price reduction. Looking ahead, Burberry noted strong customer response to its spring 2026 collection, which drove significant improvements in sales. “
On the conference call, Schulman, a retail veteran who previously served as president of Bergdorf Goodman, was asked about the Saks restructuring and its impact on Burberry. “Wholesale only accounts for about 12% of our business, but it is especially important as we are in the transformation process […] Because this is where people can discover Burberry,” he said. “Saks Fifth Avenue, Neiman Marcus and Bergdorf Goodman are extremely important pillars of the North American luxury industry, and I have a deep personal connection to the industry and the company. We have full confidence in the new leadership and we want this department to be smaller and stronger. “
