Burberry beat expectations for sales growth in the key holiday quarter as its marketing push featuring British celebrities resonated with shoppers and helped attract more Gen Z consumers in China.
Joshua Schulman, who became CEO in July 2024 as sales were sliding, is leading a turnaround focused on trench coats, scarves and the brand's British heritage, while cutting costs after reducing the workforce by 20% last year.
"Our customers responded to our immersive Timeless British Luxury campaigns and experiences, while the continued strength in our core outerwear category is now extending into accessories and ready-to-wear," Schulman said in a statement on Wednesday.
Comparable store sales rose 3% in the three months to December 27, beating analysts' expectation of 2% growth, according to a company-compiled consensus.
Sales in China rose 6% on a comparable basis, as the brand continued its recovery in the crucial luxury market. Burberry said the performance was supported by "double-digit" growth in Gen Z customers.
The company said its markdown period was shorter and "shallower" than last year, an encouraging sign for investors looking for signs that customers are increasingly willing to buy Burberry products at full price.
Burberry said it expects full-year adjusted operating profit to be in line with the consensus forecast of 149 million pounds ($200 million).
