Burberry Q1 27 trading update bang in line

Research evidence excerpt

Burberry Q1 27 trading update bang in line

not be fully read across to the rest of the Specialist Sales contact details:

sector, possibly recalibrating expectations for all the upcoming luxury reporters. Olivia Petronilho - Specialist Sales -

European Consumer

• Noteworthy Areas: Burberry reported Q1 27 retail sales a tad ahead of our (44-20) 3493-3709

expectations at +5% LFL (JPMe +4%), and in line with the company consensus olivia.b.petronilho@jpmorgan.com

of +5%, and the last quarter’s +5% level, on comps 500bps tougher. 1) By

region, performance was primarily driven by Americas, beating our

expectations and accelerating sequentially to +12% (JPMe +7%) from +10%

in Q4 26 despite comps 800bps tougher, fueled by local demand and broad-

based customer acquisition. Greater China was the second best performing

region, up 9% (JPMe +8%), albeit still a small slowdown on tougher comps.

The release flagged resilient local demand driven by “outsized growth” in Gen

Z customers. Rest of Asia was also slightly ahead of expectations at +3%

(JPMe +2%), driven by very solid growth in the South Korea (+11%), albeit the

region decelerated vs last quarter (+13%), partially offset by a drag from Japan

(-2% vs -6% in Q4 26). EMEIA sales growth missed our estimates, down 3%

LFL (JPMe ‘flat’), and even decelerated sequentially from Q4 26 -2% on

comps 500bps tougher. Apart from the Middle East impact (2% on regional

LFL sales), the release also flagged lower tourist spend. 2) On

product categories, the release noted that women’s handbags returned to

growth and are attracting new customers. Outerwear category was +DD% and

the group is also seeing growth in RTW categories including knitwear, polos

and swimwear.

• Outlook & Guidance: Burberry revised upward some parts of its FY27