Burberry’s Q3 Comparable Sales Rise 3% as Gen Z Drives Double-Digit Growth in Asia

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Burberry reported a 3% rise in comparable store sales in the 13 weeks to December 27, up from 2% in Q2 and reversing a 1% decline in Q1. Gen Z shoppers in Greater China and Asia-Pacific delivered double-digit sales growth, driven by a marketing push featuring British celebrities.

1. Comparable Sales Growth Accelerates in Q3

Burberry reported a 3% increase in comparable store sales for the 13 weeks ended December 27, marking an improvement from 2% growth in Q2 and reversing the 1% decline seen in Q1. Solid performances across Europe, North America and Asia-Pacific were driven by strong demand for the brand’s core outerwear and scarf categories. The company noted that full-price sell-through rates rose by 120 basis points versus the prior year, underscoring more efficient inventory management and heightened customer engagement in key markets.

2. Holiday Quarter Exceeds Expectations on Celebrity-Led Campaigns

During the critical holiday trading period, Burberry outperformed consensus forecasts for overall sales growth, buoyed by a marketing push featuring British celebrities in high-impact social-media campaigns. In Greater China, foot traffic in flagship stores rose 15% compared with the prior year, while online orders from mainland customers grew 20%. Management highlighted that promotional activity remained disciplined, with markdowns lower than the historical average, contributing to a 1.8 percentage-point improvement in gross margin for the quarter.

3. Gen Z Momentum Strengthens in Asia-Pacific

Double-digit growth among Gen Z shoppers in Greater China and the broader Asia-Pacific region underpinned Burberry’s top-line momentum. Transactions by customers aged 18-25 rose 12% year-on-year in the quarter, as the brand’s streetwear collaborations and TikTok-driven product launches resonated with younger audiences. Executives noted that digital engagement metrics—such as a 25% increase in short-form video views and a 30% rise in new social-media followers—point to an expanding pipeline of future customers across all regions.

Sources

WPR