For years, luxury brands chased ever-higher price points, louder logos and ultra-exclusive positioning. But now Burberry is leaning into more understated British heritage, recognizable design and a growing American fascination with the English countryside.
Burberry said this fiscal year marked a "meaningful inflection point." The British luxury outerwear maker said comparable sales grew 2% over the fiscal year, boosted by a 10% growth in the Americas and China in the quarter ended March.
Burberry Group PLC (LSE:BRBY) said its turnaround strategy had reached a "meaningful inflection point" as it returned to comparable sales growth and beat profit expectations for the 2026 financial year. The maker of trench coats and scarves said fourth-quarter retail comparable sales rose 5%, ahead of analyst expectations of 4.6%, helped by a 10% increase in Greater China and a 10% rise in the Americas.
Sales climbed 5% as it continues to undergo a turnaround plan amid difficult market conditions due to geopolitical instability.
The FTSE 100 Index remained in a narrow range this week as traders watched the developments in the Middle East, where odds of a deal between the US and Iran rose. It also wavered because of the weak HSBC earnings.
Burberry Group PLC's (LSE:BRBY) recovery from one of the most dramatic falls from grace in British retail is gathering momentum, with the luxury fashion house's pivot back to its heritage strengths – outerwear, iconic branding and more accessible price points – showing early signs of working. UBS, which has been positive on the stock since last year, expects the company's full-year results in May to confirm the new strategy is taking hold, forecasting fourth-quarter retail sales of £554 million, up 6% on a like-for-like basis.
The aerospace engineer, luxury goods group and conference organiser have all been swept up in the market fallout from the Middle East hostilities The escalating military conflict involving Iran continued to reshape the FTSE 100 on Monday, claiming a diverse set of casualties beyond the obvious targets as investors reassessed exposure to anything tied to aviation, Gulf commerce or consumer spending. Rolls-Royce Holdings PLC (LSE:RR.
Soft investor sentiment towards luxury stocks is weighing on names such as Burberry Group PLC and Watches of Switzerland Group PLC, with RBC Capital Markets warning that a lack of earnings momentum is translating into weak market interest. In its latest look at luxury datawatch, analysts at the bank said feedback from US investor meetings pointed to “some of the weakest” sentiment since 2014-2016.
The Burberry Group PLC (LSE:BRBY) turnaround is gaining traction, according to Barclays, as the British fashion house “checked all the boxes” in last week's trading update, delivering a second consecutive quarter of positive retail sales growth, including a return to growth in China Barclays analyst Carole Madjo, who upgraded the luxury group to 'overweight' and raised the price target to 1,450p, said the update strengthened confidence that CEO Joshua Schulman's Burberry Forward strategy is working. Burberry is now seen as an “attractive self-help play for 2026”, with momentum building in both revenue and earnings.
Burberry Group plc (BURBY) Q3 2026 Sales/Trading Call Transcript
The group reported double-digit growth among Gen Z in Greater China and Asia-Pacific, adding its reach with younger consumers across all regions was strengthening.
Burberry Group PLC (LSE:BRBY) shares fell 2.4% to 1,145p on Friday after JPMorgan cut its rating to 'underweight', warning that hopes for a sharp improvement next year look too optimistic. The bank said that while 2026 should bring a degree of stabilisation to the luxury sector after two turbulent years, the recovery is likely to be uneven.