Burberry runs in London after above-expected quarter driven by sales in China
The company emphasises the strong interest of Gen Z consumers. Turnover runs in Korea
Chiara Di Cristofaro
(Il Sole 24 Ore Radiocor) - Burberry is running in London, thanks to above-expected numbers and an increase in sales in the third quarter of FY2026, with strong interest from Generation Z customers.
The group reported retail revenues of £665m ($893.8m) in the fiscal third quarter (+3% year-on-year at constant exchange rates). Comparable shop sales rose 3% in the 13 weeks ended 27 December, beating analysts' expectations of a 2% increase in the third quarter. At the time of the six-month figures, CEO Joshua Schulman said it was the first comparable sales growth in two years, and the momentum has now extended into the third quarter.
For Barclays (equal-weight with target price at £13.40), third quarter results were 'solid', driven in particular by the Greater China region. In the region, comparable retail sales were up 6%, while in South Korea, they were up 13%, driven by both Chinese tourists and local demand. "Following the performance of Chinese customers at Richemont, which showed a sequential slowdown year-on-year (although still accelerating on a two-year comparison), we believe these figures can be read as a positive sign for the region as a whole," says Barclays. "We believe," it adds, "that the Chinese cluster was solid in the third quarter, having apparently driven both domestic spending in Greater China and offshore spending in the rest of the Asia-Pacific region.
Burberry went on to say that it has recorded double-digit growth among Gen Z customers in Greater China and Asia Pacific, and is further strengthening its presence among younger consumers in all regions. The company then kept unchanged its forecasts for FY2026 on all metrics, including adjusted ebit, reiterating that it is comfortable with the current consensus, which currently implies around £149m. "We do not consider the absence of a guidance upgrade to be interpreted negatively, as the company had already signalled its intention to retain room for future investment," the analysts conclude.
