Performance Overview - In Q1 FY26, Burberry's retail same-store sales declined by 1% year-over-year, an improvement from the previous quarter's decline of 6%[9] - Retail sales in the Americas and EMEIA regions increased by 4% and 1% year-over-year, respectively, while Greater China and Asia-Pacific saw declines of 4% and 5%[9] Strategic Initiatives - The company closed 4 stores in Q1 FY26, resulting in a 1% year-over-year decrease in store space, aimed at enhancing overall channel quality and productivity[10] - Burberry expects to save approximately £80 million in operating expenses (OPEX) throughout the year due to strict cost control measures[10] Product and Pricing Strategy - The Autumn 25 collection has outperformed expectations, achieving the highest sell-out rate in three years, significantly boosting brand recovery[11] - Burberry is implementing a "Good-Better-Best" pricing strategy to cater to diverse consumer tiers, which is expected to increase the average unit retail (AUR) and overall customer spending[12] Marketing and Consumer Engagement - The company has a clear annual marketing strategy, with expenditures expected to remain at a high single-digit percentage of revenue, focusing on enhancing brand appeal among different consumer groups[13] - Increased marketing efforts targeting Generation Z consumers in China are planned, especially around key festivals to boost brand attractiveness[13] Risks and Challenges - Potential risks include weak macroeconomic consumption, underperformance of brand transformation efforts, and significant contraction in wholesale channels[14]