Burberry shares were higher on Friday morning after the luxury brand demonstrated signs of a turnaround in its first quarter.
Burberry’s first-quarter trading update revealed retail sales declining 2% at constant exchange rates to £433m. The luxury fashion house saw comparable store sales fall 1%, whilst currency headwinds added further pressure, resulting in a 6% drop in reported revenue.
All in all, the headline figures represent a significant improvement over the recent decline in sales.
Burberry shares had nearly doubled since their April lows, going into today’s announcement and investors were happy to take the shares 1% higher in early trade on Friday.
The company showed signs of regional recovery, with the Americas posting 4% growth driven by new customer acquisition, and Europe, Middle East, India and Africa managing 1% growth as local spending offset weaker tourist activity.
However, Greater China remained a concern with sales down 5%, including a 4% decline in Mainland China. Asia Pacific struggled with a 4% fall, largely due to difficulties in Japan, though South Korea provided some relief with positive growth.
In terms of the outlook, Burberry said, ‘We are still in the early stages of our turnaround, and the macroeconomic environment remains uncertain’. Investors are choosing to look at the glass half full for now and will hope the turnover gathers pace.
“Over the past year, we have moved from stabilising the business to driving Burberry Forward with confidence,” said Joshua Schulman, Burbery Chief Executive Officer.
“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. 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.”