Burberry’s comparable retail sales increased 3% year-on-year to £665 million on a constant currency basis in the third quarter of fiscal 2026, ended December 27, 2025.
The company confirmed its outlook for the full year, with revenues declining between 0% and 3%, and comparable retail sales growth of -1% to 4%. Burberry said its quality of revenue improved across all channels and regions, as it returned to a shorter and shallower markdown strategy.
“During the festive quarter, we continued to build momentum with our Burberry Forward strategy, delivering sequential improvement in comparable sales growth and an improved quality of revenue across channels and geographies,” said CEO Joshua Schulman in a statement. “As we move into 170 years of Burberry, these results reaffirm the enduring strength of our iconic brand and give us confidence in the path ahead.”
Hero categories such as outerwear and scarves continued to outperform on the sales floor, both up double digits. To push the categories, Burberry improved retail productivity through enhanced visual merchandising, including the launch of 190 Scarf Bars, on track to reach 200 by the end of the calendar year. Schulman noted that younger customers have been drawn to scarves as an entry point to the brand. Momentum has also started to build in the handbag and ready-to-wear categories, particularly knitwear. “The continued strength in our core outerwear category is now extending into accessories and ready-to-wear,” Schulman said, emphasizing the success of Burberry’s Equestrian Knight cashmere sweater during the festive period.
Following the company’s disappointing H2 results, Joshua Schulman presented ‘Burberry Forward’ — a detailed plan that includes a reset of its pricing structure and a renewed focus on the core customer.
Greater China — which makes up about a third of Burberry’s business — was the best-performing region, with comparable store sales up 6% driven by local spending. “For Burberry, China never went away. The Chinese customer has always been a focus for us and it’s a very important part of our customer base,” Schulman said during the earnings call. “As we’ve moved into the second year of the Burberry Forward strategy, our team is truly connecting with customers across ages and demographics in [China’s] big cities and secondary cities, and we’re reaching a broad luxury audience.”
Sales across the rest of Asia-Pacific were up 5%, led by tourist demand and by local demand in South Korea. The number of Gen Z customers in China and Asia-Pacific grew double digits. Meanwhile, comparable store sales in the Americas grew 2%, through new and local customer growth, while EMEIA (Europe, the Middle East, India and Africa) sales were flat, as an increase in local spending was offset by declines in tourist purchases across the Middle East, in particular.
Analysts are encouraged by the results. “Burberry has produced a positive surprise this morning,” said Bernstein luxury goods analyst Luca Solca, who rated Burberry “outperform”, in a note. “The quarter’s results also come in the context of a -3% headwind stemming from the non-repeat of [last year’s] significant markdowns. Looking forward, Burberry points to a strong customer response to its spring 2026 collection, which has driven significant sell-through improvement.”
During the conference call, Schulman — a retail veteran who was previously president at Bergdorf Goodman — was asked about the Saks restructuring and its impact on Burberry. “Wholesale is only about 12% of our business, but it is important particularly in a moment where we’re in the midst of a transformation [...] because it’s a place where people can discover Burberry,” he said. “Saks Fifth Avenue, Neiman Marcus and Bergdorf Goodman are incredibly important pillars in the North American luxury sector, and I have a deep personal connection to the sector and to the companies. We have confidence in the new leadership, and our hope would be that there is a somewhat smaller and stronger sector.”
