Burberry hails progress despite Iran war pressure

Luxury fashion brand Burberry has hailed the impact of a turnaround strategy – but warned the Middle Eastern conflict has hit operations.

The firm said it had made pleasing progress over the first quarter as it pushes ahead with an improvement plan launched in late 2024.

The raincoat and scarf maker has refocused on its British heritage and altered its pricing strategy, shifting away from some ultra-luxury lines.

The London-listed business reported retail revenues lifted by five per cent to £455 million for the 13 weeks to June 27, compared with a year earlier.

Growth was also supported by a one per cent increase linked to positive currency exchange rates.

It said the recent positive performance was supported by 12 per cent growth in its Americas business, and a nine per cent rise in Greater China.

China had a particular boost from local shoppers and strong demand from Gen Z customers.

Elsewhere in Asia, the business highlighted an 11 per cent increase in South Korea, linked to both local and tourist spending, but this was partly offset by a two per cent decline in Japan.

In Europe, the Middle East and Africa, the group reported a three per cent drop in sales, highlighting a drag from the Iran conflict and weaker tourist spending.

The retail business said local trade had boosted sales across flagship London stores, as the conflict continued to dent demand from international visitors.

Chief executive Joshua Schulman said: “For the first time in three years, we saw growth across our womenswear, menswear, accessories and childrenswear divisions, anchored by the outperformance of outerwear.

“Our strategy is working.

“We are attracting a broad range of luxury customers across product categories, channels and geographies, reinforcing my confidence in the opportunities ahead.”

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