Burberry reports positive Q3 driven by "Burberry Forward" strategy

Burberry Group has released its third-quarter trading update for the 13 weeks ended 27 December 2025, revealing a return to growth and steady progress under its "Burberry Forward" strategy.

Chief Executive Officer Joshua Schulman reported that the luxury house achieved a sequential improvement in comparable sales growth and enhanced the quality of its revenue across various channels and geographies during the critical festive period.

Financial performance and regional highlights

The group’s retail revenue reached 665 million pounds (894 million dollars), representing a 1 percent increase at reported exchange rates and a 3 percent increase at constant exchange rates (CER). This growth was underpinned by a 3 percent rise in comparable store sales, a significant recovery from the 4 percent decline recorded in the same period last year. While currency fluctuations acted as a 2 percent headwind, retail space remained neutral to the overall performance.

Regionally, performance was led by Greater China, where comparable store sales grew 6 percent, doubling the growth rate seen in the second quarter. This was bolstered by strong local spending and a double-digit increase in Gen Z customers within the region. The Asia Pacific region followed with 5 percent growth, fueled by a 13 percent rebound in South Korea. In the Americas, sales rose by 2 percent, while the EMEIA region remained flat as increased local demand offset a continuing decline in tourist spending.

Strategic execution and product momentum

Burberry’s focus on its core heritage categories continues to yield results. Outerwear and scarves both delivered double-digit growth, maintaining their status as "hero categories". The brand is also seeing product momentum extend into accessories, handbags, and ready-to-wear.

Key strategic initiatives highlighted in the report include implementation of a shorter, shallower, and more discreet markdown period compared to the previous year to improve revenue quality, high-impact "Timeless British Luxury" campaigns and experiential activations and rollout of 190 scarf bars (with a target of 200 by year-end).

Future outlook and guidance

Looking ahead, Burberry expressed confidence in its trajectory as it enters its 170th year. The company expects its FY26 adjusted operating profit to align with current market consensus. For the full year, the group anticipates a currency headwind of approximately 50 million pounds on revenue and 5 million pounds on adjusted operating profit based on recent exchange rates.

Other financial guidance for FY26 includes annualized savings of 80 million pounds, capital expenditure of approximately 120 million pounds and a mid-single-digit percentage decline in wholesale.

Burberry remains focused on driving sustainable long-term value and improving the quality of its earnings as it navigates the final quarter of the fiscal year.