Burberry reports 2% revenue decline, same-store sales down 1% in Q1

Burberry reported a 2% decline in revenue to £433m for Q1, with same-store sales down 1%. Sales increased in Europe and the Americas, marking an improvement from the previous quarter. The luxury fashion brand's earnings show signs of a turnaround, with the stock rallying in London trading.

LONDON, July 2, 2025 — Burberry (LON:BRBY) reported a 2% decline in revenue to £433 million for the first quarter ended June 28, 2025, according to a recent earnings report. The luxury fashion brand's same-store sales decreased by 1%, which was a modest improvement compared to the previous quarter's 6% fall. This performance was better than analysts' expectations of a 3% decline [1].

The company's comparable sales increased by 1% in Europe and the Americas, indicating a recovery in these regions. Conversely, sales in Greater China and Asia Pacific fell by 5% and 4%, respectively. Despite these regional differences, the overall performance suggests a stabilization in the brand's sales [1].

Burberry's CEO, Josh Schulman, commented on the quarter's results, expressing confidence in the brand's trajectory. Schulman noted that the autumn collection was well-received and that the company is focusing on building "brand desire" to drive topline growth. The company also reiterated its plans to deliver margin improvement through "simplification, productivity, and cash flow" [3].

Investors responded positively to the news, with Burberry's shares rising 5% in early London trading. Analysts at Citi praised the company's third consecutive quarter of like-for-like improvement, suggesting that comparable sales could turn positive in the current quarter [3].

However, Jefferies analysts cautioned that while the company has taken the right steps, the current valuation may not be justified without a significant rebound in sales densities. They noted that the broader global industry footfall challenges appear stronger than the benefits of the 'Britishness' revival [1].

Burberry remains optimistic about its turnaround strategy, acknowledging ongoing challenges but expressing cautious optimism for the future. The company is focusing on building brand desire and investing in the first half of the year to support its growth plans [1].

References:
[1] Investing.com — Burberry (LON:BRBY) reported a 1% drop in comparable retail sales for the first quarter ended June 28, beating analyst expectations for a 3% decline and offering early signs of stabilization. [https://www.investing.com/news/earnings/burberrys-firstquarter-comparable-sales-fall-1-less-than-expected-4141109](https://www.investing.com/news/earnings/burberrys-firstquarter-comparable-sales-fall-1-less-than-expected-4141109)
[3] Reuters — Burberry shows early signs of recovery as first-quarter sales fall less than expected. [https://www.reuters.com/business/burberry-shows-early-signs-recovery-first-quarter-sales-fall-less-than-expected-2025-07-18/](https://www.reuters.com/business/burberry-shows-early-signs-recovery-first-quarter-sales-fall-less-than-expected-2025-07-18/)