{"id":689241,"date":"2025-11-13T19:13:56","date_gmt":"2025-11-13T16:13:56","guid":{"rendered":"https:\/\/analyse.optim.biz\/?p=689241"},"modified":"2025-11-13T19:13:56","modified_gmt":"2025-11-13T16:13:56","slug":"burberrys-store-sales-return-to-growth-in-q2","status":"publish","type":"post","link":"https:\/\/analyse.optim.biz\/?p=689241","title":{"rendered":"Burberry\u2019s Store Sales Return to Growth in Q2"},"content":{"rendered":"
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Earnings<\/span><\/div>\n<\/div>\n

Burberry\u2019s Store Sales Return to Growth in Q2<\/h1>\n
By <\/span>Maliha Shoaib<\/span><\/span><\/span><\/div>\n

November 13, 2025<\/p>\n

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    Burberry’s 2025 festive campaign.<\/span>Photo: Courtesy of Burberry<\/span><\/div>\n<\/div>\n<\/div>\n<\/header>\n<\/div>\n
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    Burberry\u2019s revenue declined 3% to \u00a31.03 billion in the first half of 2026, ended September 27, 2025. However, its comparable retail sales returned to growth in Q2, for the first time in two years, up 2% \u2014 a slight improvement on last quarter\u2019s 1% decline.<\/p>\n

    \u201cOne year into Burberry Forward, my belief in this extraordinary British luxury house is stronger than ever,\u201d CEO Joshua Schulman said at Thursday\u2019s earnings presentation, hosted at the brand\u2019s London HQ. \u201cWe have moved from stabilizing the business to returning to growth. I am encouraged by the signals I am seeing throughout the business, which provide initial proof points that our Burberry Forward strategy is working with our timeless British luxury expression and an improved product offering. Our brand has become more desirable; we\u2019re attracting new customers while welcoming back existing ones, resulting in sequential improvement in customer growth.\u201d<\/p>\n

    Burberry Forward is centered on four pillars: extend the timeless British luxury brand expression across all touchpoints; improve merchandising by leading with outerwear; align the retail and e-commerce distribution with the product and customer strategy; and reignite a high-performance culture internally.<\/p>\n

    The British brand marks its 170th anniversary next year. In fiscal 2026, Burberry does not expect any changes to its guidance of retail sales remaining flat. It does expect, however, to deliver annualised savings of \u00a380 million, \u00a324 million of which was delivered in fiscal 2025.<\/p>\n

    Much of Burberry\u2019s initial turnaround has been led by marketing, in which the brand continues to invest its cost savings. \u201cWe\u2019re very focused on having an ROI [through marketing], and we\u2019re pleased that the initiatives we\u2019ve had have resonated,\u201d said Schulman. \u201cWe are seeing a direct impact from marketing into sales. A year ago, we didn\u2019t have the luxury to even consider [increasing marketing beyond a high-single-digit percentage of sales] given where the P&L was, and now we want to be very mindful of those opportunities.\u201d<\/p>\n

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    Burberry’s 2025 festive campaign.<\/span>Photo: Courtesy of Burberry<\/span><\/div>\n<\/figure>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n
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    Adjusted operating profit reached \u00a319 million, compared to a loss of \u00a341 million in the first half of 2025. Gross margin in H1 rose to 67.9%, up from 63.4% in 2024, as a result of the inventory actions taken last year. Inventory was down 24% compared to H1 2024. Schulman noted a reduction in leather goods inventory, in particular, in order to test and refresh the assortment.<\/p>\n

    \u201cThe strength in the newness that we were delivering in our full-price channel fully offset the declines we were having in the outlet channel. Traffic has been challenging in that channel, but we have less inventory going through there now and we\u2019re discounting less, so all of that is good for brand health and heat,\u201d the CEO added.<\/p>\n

    Burberry is introducing lighter gabardine to improve the seasonality of its iconic trench coats, allowing them to be worn in global markets. Along with that, it has launched 100 Scarf Bars \u2014 a merchandising strategy to improve the visibility of scarves in-store \u2014 and is on track to deliver 200 by the end of the year.<\/p>\n

    Following the strengthening of its outerwear, Burberry is moving onto improving its ready-to-wear offering \u2014 knitwear, trousers, skirts \u2014 all while resetting the base price of handbags (which Schulman acknowledged had been too high). \u201cLooking forward, we are strengthening our assortment of leather boots and shoes, with a focus on both subtle and overt branding driving commercial shapes with clear brand signifiers,\u201d said Schulman.<\/p>\n

    Wholesale revenue \u2014 which accounts for 13% of total sales \u2014 declined 11% in H1, slightly better than guidance, thanks to a strong performance from strategic partners across luxury multi-brand retailers, US department stores and travel retail. \u201cWholesale serves several very important purposes. Our opinion-leading digital wholesale customers are the ideal place for customers to discover the evolution of Burberry alongside our luxury peers,\u201d said Schulman. \u201cWe\u2019ve seen growth in our wholesale order book from these opinion-leading wholesale customers globally who are enthusiastic about the new direct direction of Burberry.\u201d<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n

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    EMEIA (Europe, the Middle East, India and Africa) comparable store sales rose 1% in H1 (up 1% in both Q1 and Q2). Sales in the Americas grew 3% in the first half of the year (up 4% in Q1 and 3% in Q2). \u201cThe US was the first region to return to growth, and what we\u2019ve seen is that the brand expression and the way that we\u2019re showing up at retail in exciting ways is really resonating with the customer there. Our team in the US has been very creative \u2014 in a market where retail traffic is so-so \u2014 about how they\u2019re going to the customer,\u201d said Schulman, noting a VIC event in the Hamptons over the summer and a similar activation in Aspen planned for the winter.<\/p>\n

    Greater China led with the strongest improvement, with 3% comparable retail sales growth in Q2, an improvement on last quarter\u2019s 5% decline. Asia-Pacific sales declined 2% in H1, improving from -4% in Q1 to 0% in Q2.<\/p>\n

    Burberry is seeing new customer growth among Gen Z, especially in China. \u201cI was just in China a few weeks ago and walking through the stores with our teams there, and they were sharing how the evolution in our collection architecture is attracting different customer profiles to the brand,\u201d said Schulman. \u201cI think in the past, there may have been an idea that in order to attract younger customers in China, you need to be super edgy and do what other brands are doing. But actually, what\u2019s working in China now is authenticity \u2014 we\u2019re seeing that across all of our customer archetypes.\u201d<\/p>\n

    At the same time, Burberry is investing in AI-enabled clienteling tools to \u201csupport our client advisors and serve our customers with a warm and personal approach informed by data\u201d, said Schulman.<\/p>\n

    Looking ahead, the company is confident about the potential of the Burberry Forward strategy. \u201cI am more confident than I was 12 months ago. Then, this was a thesis \u2014 that we were too niche, we were trying to be [like] other brand strategies and that we weren\u2019t true to our own DNA,\u201d said Schulman. \u201cAs we\u2019ve leaned into that [DNA], it\u2019s resonating with the customers we want to have. Long term, I see this as a bigger opportunity than I envisioned a year ago.\u201d<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/article>\n

    Source URL: http:\/\/vogue.com\/article\/burberrys-store-sales-return-to-growth-in-q2<\/p>\n","protected":false},"excerpt":{"rendered":"

    Earnings Burberry\u2019s Store Sales Return to Growth in Q2 By Maliha Shoaib November 13, 2025 Burberry’s 2025 festive campaign.Photo: Courtesy of Burberry Burberry\u2019s revenue declined 3% to \u00a31.03 billion in the first half of 2026, ended September 27, 2025. However, its comparable retail sales returned to growth in Q2, for the first time in two […]<\/p>\n","protected":false},"author":1,"featured_media":689242,"comment_status":"open","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[50],"class_list":["post-689241","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-politics","tag-vogue-com"],"_links":{"self":[{"href":"https:\/\/analyse.optim.biz\/index.php?rest_route=\/wp\/v2\/posts\/689241","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/analyse.optim.biz\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/analyse.optim.biz\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/analyse.optim.biz\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/analyse.optim.biz\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=689241"}],"version-history":[{"count":0,"href":"https:\/\/analyse.optim.biz\/index.php?rest_route=\/wp\/v2\/posts\/689241\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/analyse.optim.biz\/index.php?rest_route=\/wp\/v2\/media\/689242"}],"wp:attachment":[{"href":"https:\/\/analyse.optim.biz\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=689241"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/analyse.optim.biz\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=689241"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/analyse.optim.biz\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=689241"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}