Burberry Group (BRBY) Q1 2027 TU earnings summary

Executive summary

• Comparable retail sales grew 5% year-over-year, led by strong performance in the Americas (+12%) and Greater China (+9%), with all product divisions returning to growth for the first time in three years.

• Outerwear and scarves saw double-digit growth, supported by new product introductions and successful marketing campaigns, while e-commerce grew by mid-teens and Gen Z customer acquisition was up double digits.

• Brand momentum was sustained through global and local campaigns, including Portraits of an Icon and collaborations in China, driving new customer engagement and increased full-price sales.

• Store productivity improved through enhanced merchandising, clienteling, and the launch of 97 new polo galleries by Father's Day.

Financial highlights

• Retail revenue reached £455 million, up 5% at reported exchange rates and 4% at constant exchange rates, with a 1% headwind from space and a 1% currency tailwind.

• E-commerce contributed high single-digits of sales and marked its eighth consecutive quarter of growth.

• Annualised cost savings are expected to reach £100 million by FY 2027, with £80 million already delivered in FY 2026.

• Adjusted effective tax rate is expected to remain between 27% and 30%.

Outlook and guidance

• Full-year revenue growth and margin expansion are expected in line with consensus (+5% revenue growth), with further progress anticipated on financial ambitions.

• Retail space is expected to remain broadly stable through FY 2027, while wholesale revenue guidance for H1 FY 2027 was raised to high single-digit growth.

• Gross margin is expected to expand for FY 2027, with higher margin in H2 versus H1 due to seasonal phasing and inventory provisioning normalization.

• No underlying downgrade to EBIT outlook; focus remains on execution and delivering revenue and margin growth.

• Currency expected to provide a £20m tailwind to revenue and a neutral impact on adjusted operating profit.