Gen Z Shoppers in China, Asia-Pacific Fuel Burberry Growth in Key Third Quarter

Core Insights - Burberry's underlying retail sales increased by 3 percent in the holiday trading quarter, driven by strong performance from Gen Z shoppers in China and the Asia-Pacific region [1][4] - The company's overall retail revenue rose by 1 percent to 665 million pounds, exceeding consensus estimates of a 2 percent increase, resulting in a 4 percent rise in share price [2] - Comparable store sales improved by 3 percent, contrasting with a 4 percent decline in the same period last year, with growth attributed to existing stores rather than new openings [3] Regional Performance - Sales in China rose by 6 percent, while the Asia-Pacific region saw a 5 percent increase, and the Americas region grew by 2 percent during the quarter [4] - The company noted that its Burberry Forward strategy is gaining momentum, leading to improved comparable sales growth and revenue quality across various channels and regions [4][6] Product and Marketing Strategy - Burberry's marketing campaigns focused on "immersive timeless British luxury" resonated well with customers, contributing to strong performance in the outerwear category, which is now extending to accessories and ready-to-wear [5] - The company reported a "higher quality" of revenue across all channels and regions, with a shorter and more discreet markdown period compared to the previous year [7] Financial Outlook - Burberry anticipates that adjusted operating profit will align with consensus for fiscal 2025-26, indicating confidence in building on recent progress in revenue quality and sustainable long-term value [6]