Burberry posts 5% revenue growth as US demand drives turnaround
Burberry reported first-quarter revenue of £455 million, up 5% from a year earlier, as strong US spending offset a decline in Europe caused by the Iran conflict weighing on tourist travel.
"The US consumer continues to embrace our brand, and we are seeing early signs that our turnaround strategy is gaining traction," Chief Executive Officer Joshua Schulman said in a statement.
Comparable store sales rose 5% in the 13 weeks to June 27, matching analysts' expectations. The Europe and Middle East region declined 3%, hurt by reduced tourist spending as the Iran war disrupted travel patterns. Trench coats led growth across every product category — the first time in three years the company achieved category-wide expansion, according to the earnings release.
The results mark a turning point for Burberry after years of uneven performance under previous management. The company's turnaround, which includes refreshed product lines and increased marketing investment, now faces the test of sustaining momentum as geopolitical risks in the Middle East persist. The US market, which delivered the strongest growth, will remain the key driver as Burberry competes with French luxury houses LVMH and Kering for American discretionary spending.
The guidance raise signals management expects the recovery to broaden in the second half. Investors will watch the next quarterly update for evidence that US momentum can offset continued weakness in Europe and the Middle East.
This article is for informational purposes only and does not constitute investment advice.
