Luxury fashion brand Burberry announced that it was making “early progress” on its recovery strategy, which has helped slow its sales decline.
In the 13 weeks ending 28th June, retail revenue dropped 6% to US $ 562.9 million, while comparable store sales fell 1%, compared to a 21% reduction the previous year. Growth in new clients helped offset a 5% and 4% decline in Greater China and Asia Pacific, while comparable sales in the Americas and Europe, the Middle East, India and Africa (EMEIA) rose by 4% and 1%, respectively.
Burberry stated that better conversion rates, stronger performance in scarves and outerwear, and growing brand appeal were key contributors to its first-quarter improvement.
The company said it is on track to achieve US $ 104 million in annualized savings in the current fiscal year, expecting the benefits of its strategic initiatives to grow over time.
Burberry Chief Executive Joshua Schulman highlighted that the improvement in first-quarter comparable sales—alongside strength in the brand’s core categories and rising brand desirability—reinforces confidence in the company’s direction. He added that the Autumn 2025 collection is being well received by a broad spectrum of luxury customers as it reaches stores. While acknowledging persistent macroeconomic challenges and that the brand is still early in its transformation, Schulman expressed optimism about the progress made so far.
This update follows news that Burberry’s operational loss fell to US $ 3.9 million in the 52 weeks ending March 29, down from US $ 543.4 million the previous year. Total sales declined 17% to US $ 3.25 billion.
As part of a company-wide cost-cutting strategy to support its turnaround, the retailer also announced plans to eliminate 1,700 positions by 2027.
