Burberry Holiday-Quarter Sales Beat Expectations as China Rebounds and Markdowns Ease

Burberry holiday-quarter sales rose 3% in comparable-store terms during the 13 weeks ended 27 December 2025, beating the company-compiled analyst expectation of 2%. Retail revenue was £665 million (up 1% reported and 3% at constant exchange rates).

What actually improved (and where)

The quarter’s lift was led by Asia, while Europe was steady:

• Greater China: comparable sales +6%

• Asia Pacific: +5% (including a +13% rebound in South Korea; Japan +2%)

• Americas: +2%

• EMEIA (Europe, Middle East, India & Africa): 0% (locals offset weaker tourist spending)
  

Burberry holiday-quarter sales:why it matters

Burberry said the quarter delivered a “higher quality of revenue,” helped by a shorter and shallower markdown period than a year earlier. That matters because reduced discounting can support brand pricing and protect margins, even if overall demand remains uneven.

In plain terms: more of the growth came from local demand in Asia, while tourism-dependent spending in Europe remained soft.

The “quality of sales” point: fewer markdowns

Burberry said it delivered a “higher quality of revenue” by running a shorter and shallower markdown period than a year earlier—an important detail in luxury retail, where heavy discounting can inflate volume but damage pricing power.

Burberry’s CFO, Kate Ferry, told analysts that store traffic is still challenging, but conversion has been strong—meaning fewer people may be walking in, but more of those who do are buying.

What customers were buying

The company pointed to continued strength in its core “hero” categories: outerwear and scarves, both up double digits year-on-year in the quarter. Burberry also said momentum is now extending to handbags and ready-to-wear, and cited improved sell-through for its Spring 2026 range.

Why China mattered so much this quarter

CEO Joshua Schulman (who took over in July 2024) said growth in Gen Z shoppers in China accelerated going into peak outerwear/scarf season. Burberry described “double-digit” growth in Gen Z customers in Greater China and Asia Pacific.

Reuters reported Burberry’s China-facing activations included a branded ice rink in Beijing and a pop-up on a ski slope in Chongli, alongside a Lunar New Year campaign tied to the Year of the Horse—a natural fit with Burberry’s equestrian knight logo.

Outlook and market reaction

Burberry said it expects FY26 adjusted operating profit to be in line with consensus (stated as £149 million). After the update, shares rose (Reuters noted more than 4%).

This wasn’t a blockbuster quarter—but it was a clean, measurable step: positive comps, less discounting, and Asia-led demand doing the heavy lifting, while European tourist weakness continues to limit upside.