Burberry’s return to growth is one of the standout luxury fashion stories of 2026. After years of falling sales and a blurred identity, the British house has now posted its fourth consecutive quarter of growth. Behind the turnaround is a clear strategy led by CEO Joshua Schulman, called “Burberry Forward”, built on a return to the brand’s roots: the trench coat, the scarf, and an authentic British character.

Q1 Results: Growth Across Every Division for the First Time in Three Years

In its official trading update of 17 July 2026, covering the 13 weeks to 27 June 2026, Burberry reported retail revenue of £455 million, up from £433 million a year earlier — a 5% rise at reported rates and 4% at constant exchange rates. Comparable retail sales grew 5%, against −1% in the same quarter last year.

What matters most is how broad the growth was: for the first time in three years, all four divisions — womenswear, menswear, accessories and childrenswear — grew together, led by outerwear, while handbags returned to growth.

Where the Growth Came From

• Americas: +12%, driven by local demand and broad-based customer acquisition.
• Greater China: +9%, with outsized growth among Gen Z customers (born 1997–2012), the cohort that led overall customer growth in the quarter.
• Asia Pacific: +3%, with South Korea strong (+11%) and Japan down 2% on lower Chinese tourism.
• EMEIA: −3%, hit by the Middle East conflict and weaker tourist spending; excluding the Middle East, the decline narrows to −1%.

The company also raised its first-half wholesale guidance to high-single-digit growth after a positive response from trade partners.

Schulman’s Strategy: The Icon Before the Trend

Since taking charge, Schulman has refocused Burberry on what the world already knows it for: the classic trench, the famous check, scarves, and outerwear as the heart of the brand. This has been paired with a strong visual celebration of British heritage, most visibly in the anniversary campaign “Portraits of an Icon”, shot by Tim Walker and featuring faces such as Kendall Jenner and British rapper Little Simz. Commenting on the results, Schulman said the strategy is working and is attracting a wide range of luxury customers across categories, channels and markets.

Why Investors Didn’t Celebrate

Despite the positive numbers, Burberry shares fell around 5% on the day, as investors judged the update in line with expectations rather than ahead of them, with lingering caution over the pace of margin recovery and store traffic. Two days earlier, at the AGM on 15 July 2026, shareholders approved a new pay policy that could lift Schulman’s package to £12.24 million if maximum targets are hit and the share price rises 50% — but with only 63% in favour and 37% against, a level that obliges the company under UK governance rules to update shareholders within six months.

What Future Designers Can Learn from Burberry’s Return to Growth

• The power of an iconic piece: Burberry returned to growth through one garment it owns: the trench. Every emerging designer should ask which piece their brand will be known for.
• Outerwear demands expert pattern making: Coats and trenches are among the hardest garments to cut and construct — shoulders, collars, linings and ease calculations. Mastering them is a real market advantage.
• Heritage can be sold to Gen Z: Younger customers don’t reject the classic; they want it with an honest story and a contemporary image.
• Creativity needs numbers: Reading regional sales reports teaches a designer where demand is, and why, before planning the next collection.

Conclusion

Burberry’s return to growth didn’t come from a new trend but from a return to essentials: iconic pieces made with skill, a clear identity, and smart engagement with a new generation. Schulman’s next test is turning this momentum into higher profits and winning over investors. At Anna Stella Academy we believe in the same lesson: successful design starts with a precise pattern and a piece that knows its value.