Burberry Shares Make Further Gains as Q1 Sees ‘Uptick in Brand Desirability’

Burberry (LON: BRBY) shares rose more than 5% at the open on Friday after the luxury fashion house reported improved first-quarter trading, driven by stronger brand appeal and performance in core categories. 

The stock is now up around 30% year-to-date, extending its rally to more than 93% over the past three months.

Retail revenue for the 13 weeks to 28 June came in at £433 million, down 2% at constant currency and 6% at reported rates. Comparable store sales fell 1% but marked a sharp improvement from the 21% drop reported a year earlier.

Chief Executive Joshua Schulman said the company had moved from “stabilising the business to driving Burberry Forward with confidence,” highlighting an “uptick in brand desirability” and early success from its new Autumn 2025 collection.

By region, comparable sales rose 4% in the Americas and 1% in EMEIA, but declined in Greater China and Asia Pacific, down 5% and 4%, respectively.

Burberry pointed to momentum from recent marketing campaigns, strength in outerwear and scarves, and enhanced in-store presentation. 

Online sales also rose for a third straight quarter, and a cost-efficiency programme is said to remain on track to deliver £80 million in annualised savings by fiscal 2026.

Despite ongoing macroeconomic challenges, the company said it is focused on reigniting brand desire and remains confident in its path to “sustainable, profitable growth.”

For FY26, the company also expects to deliver “margin improvement with a continued focus on simplification, productivity and cash flow.”