Burberry Gains Momentum as China Demand Lifts Holiday Sales

Burberry has delivered stronger than expected holiday sales, signalling renewed momentum for the British luxury brand as demand from younger shoppers in China helped offset broader pressures facing the global luxury sector. The London headquartered fashion house reported improved performance in the final quarter of the year, driven by higher full price sales and a more focused brand strategy. Comparable store sales rose ahead of market expectations, supported by disciplined discounting and a renewed emphasis on core products such as outerwear and scarves. The results were welcomed by investors, with shares rising as confidence grew that the brand’s turnaround efforts were gaining traction. While luxury spending has remained uneven across many regions, Burberry’s performance suggests targeted marketing and brand clarity can still generate growth, even as consumers remain selective with discretionary purchases.

China played a central role in the stronger showing, with Burberry recording solid sales growth across the region, particularly among Gen Z shoppers. Executives said younger consumers responded positively to locally tailored campaigns and storytelling that highlighted the brand’s British heritage. Innovative retail concepts and seasonal activations helped increase engagement during peak shopping periods, while improved conversion rates indicated that customers were more willing to buy at full price. The brand also reported attracting younger shoppers globally, especially through accessories, which have become a key entry point for new customers. According to Burberry, the quarter benefited from a shorter and shallower markdown period compared with last year, reflecting tighter inventory management and more confident pricing.

The results mark a milestone under chief executive Joshua Schulman, who has been leading a reset aimed at restoring the brand’s identity and improving profitability. Since taking the role, he has prioritised cost control while sharpening focus on Burberry’s most recognisable categories. Management said the company now expects full-year adjusted operating profit to align with market forecasts, easing concerns about the pace of recovery. Analysts noted that Burberry’s update may offer reassurance for the wider luxury sector, particularly regarding the health of Chinese demand. However, executives cautioned that store traffic remains challenging in many markets, even as conversion improves. The coming months will test whether Burberry can sustain growth amid a cautious consumer environment and ongoing global uncertainty.