LONDON — Burberry said Wednesday its fiscal third-quarter sales edged higher as Gen Z shoppers in China bought more outerwear and scarves, helping the British luxury house steady performance into the holiday season. The company reaffirmed it expects full-year adjusted operating profit to match market expectations, and the stock jumped in early trading, Jan. 21, 2026.
Burberry’s China rebound: Gen Z lifts Q3 sales
In its quarterly trading update, Burberry reported retail revenue of £665 million for the 13 weeks ended Dec. 27, up 1% from a year earlier, as comparable store sales rose 3%. At constant exchange rates, retail sales increased 3%, with currency a 2% headwind. Greater China led the improvement with a 6% comparable sales gain, while Asia Pacific increased 5%, the Americas rose 2% and the Europe, Middle East, India and Africa region was flat as local demand offset softer tourist spending.
CEO Joshua Schulman said “these results reaffirm the enduring strength of our iconic brand and give us confidence in the path ahead,” pointing to traction in heritage-led messaging and what the company calls its hero categories. Burberry said outerwear and scarves were both up double digits, with momentum starting to extend to handbags and ready-to-wear as it refreshes store displays and expands “scarf bars” in more locations.
Burberry also said it is seeing double-digit growth among Gen Z customers in Greater China and Asia Pacific, and strengthening reach with younger shoppers across all regions. A Reuters report said the brand has leaned on in-market experiences in China — including a Burberry-branded ice rink in Beijing and a pop-up shop at a ski slope in Chongli — as it localizes storytelling and adds new influencers and brand ambassadors ahead of the Lunar New Year.
Burberry profit view stays in line as discounting eases
The group said its markdown period during the festive quarter was “shorter” and “shallower” than last year, a sign more customers were willing to pay full price. Burberry also pointed to better retail productivity and stronger conversion, even as it acknowledged that broader store traffic remains uneven.
Burberry said it expects full-year adjusted operating profit to be in line with the company-compiled consensus of £149 million, while it continues to restructure and reduce costs after cutting its workforce by about 20% last year. Shares rose as much as 7% after the update and were up more than 4% in midmorning trading; the stock gained about 29% in 2025. Burberry is listed on the London Stock Exchange under the ticker BRBY.
How the Burberry turnaround got here
The latest update marks a contrast with the strain the group faced two years ago, when Burberry issued a profit warning as demand for luxury goods slowed. In mid-2024, Burberry suspended its dividend and promised a “more familiar” look as sales slid. By late 2025, Burberry posted its first quarterly sales increase in two years, with China returning to growth — a key marker heading into the current holiday quarter.
Investors now turn to Burberry’s fourth quarter and its preliminary results for the 52 weeks ended March 28, due May 14, for confirmation that demand from younger shoppers in China can offset still-uneven spending in other regions.
