Burberry exceeded market expectations in the key Christmas trading period, marking a positive shift under new CEO Joshua Schulman. While third-quarter comparable store sales dipped 4%, this was significantly better than the anticipated 12% drop. The company attributed the improvement to its strategic focus on core products, such as scarves and outerwear, as well as a renewed emphasis on brand desirability.
Schulman noted a strong response to Burberry’s campaigns like “It’s Always Burberry Weather” and “Wrapped in Burberry,” which resonated with customers globally. Key regions such as the Americas saw growth, while Asia-Pacific showed signs of recovery, particularly in China, where sales improved markedly compared to previous quarters. The U.S. market, bolstered by the success of the 57th Street flagship, emerged as a bright spot.
Burberry’s retail and visual merchandising updates, alongside full-price sales across all luxury price tiers, contributed to its stronger-than-expected performance. Despite lingering challenges, Schulman expressed optimism about the brand’s transformation, emphasizing collaboration between its creative and commercial teams at the revamped Horseferry House headquarters.
Analysts remain cautiously optimistic about the broader luxury market, with some citing Burberry’s performance as a step in the right direction. However, uncertainty persists, with contrasting opinions on whether the rebound is widespread or driven by exceptional cases like Richemont.
