Burberry Wins Over Gen Z And Returns to Growth in The 2026-2027 First Quarter

Joshua Schulman, Burberry’s chief executive, said when the figures were released: “Our strategy is working,” highlighting that all the main product categories – womenswear, menswear, accessories and children’s wear – had returned to growth for the first time in three years. Outerwear, the brand’s signature category, recorded double-digit growth, driven by the success of trench coats, light jackets and seasonal collections.

The ‘Portraits of an Icon’ marketing campaign, featuring a line-up of 23 celebrities including Kate Moss and Kendall Jenner, also helped to attract a new customer base, with a 19 per cent increase in new buyers in the rainwear category. Women’s handbags also returned to growth, whilst the knitwear, polo shirt and swimwear collections performed strongly.

Geographically speaking, the Americas recorded the strongest growth (+12 per cent), ahead of Greater China (+9 per cent) and the Asia-Pacific region (+3 per cent). By contrast, the EMEIA region (Europe, the Middle East, India and Africa) saw a 3 per cent decline, hampered by geopolitical tensions in the Middle East and a slowdown in tourism spending.

Burberry also highlights the double-digit growth in its online business, as well as the expansion of its Gen Z customer base, which is driving growth in new customers.

For the 2027 financial year, the group has confirmed its targets for revenue growth and improved margins, whilst remaining cautious in the face of economic and geopolitical uncertainties. These results reinforce investors’ belief that the ‘Burberry Forward’ plan is beginning to yield tangible results and could mark the British fashion house’s lasting return to the ranks of the most dynamic players in the luxury sector.

But this promising start to the year was not enough to satisfy the stock markets. Burberry’s share price fell following the announcement of its results, closing on Friday down by more than 6 per cent at £10.50.

Some analysts believe the British brand needs to step up a gear. “The recent rebound reflects Burberry’s return to its British heritage and to the customers it had alienated. Growth is expected to remain positive over the next 12 months, buoyed by more favourable year-on-year comparisons. The intensive marketing campaign, pop-up shops and influencer campaigns are a sign that Burberry is back, but [they] do not constitute a permanent driver of growth,” says Yanmei Tang, an analyst at financial research firm Third Bridge.

The group’s executives are said to disagree and would argue that they are only just getting started. CEO Joshua Schulman’s medium-term goal is to restore the company to its heyday, with annual turnover of £3 billion and an operating margin in the upper end of the 10–19 per cent range. Once this target has been achieved, he hopes that turnover — and profitability — will far exceed these figures.

Two days before the publication of these results, a majority of Burberry’s shareholders voted in favour of a overhaul of executive remuneration, allowing Joshua Schulmann to significantly increase his salary if performance and share price targets are met. The CEO, who has also implemented job cuts to help the company return to profit, could therefore receive remuneration of up to £12.24 million.

However, many shareholders opposed this change: at the company’s last annual general meeting, 37 per cent of the votes were against it, whilst 63 per cent supported it.

It is worth noting that in the two years since Joshua Schulman took over, Burberry has managed to deliver better returns to its shareholders than its major competitors, such as LVMH, Hermès, Kering and Richemont. Investors have also confirmed William Jackson as Burberry’s new chairman, succeeding Gerry Murphy, who had held the post since 2018.