Burberry (BRBY) Stock Drops 5% After Q1 Sales Miss Expectations

TLDR

• Burberry Q1 comparable retail sales rose 5% to £455 million, in line with forecasts but below analyst expectations
• Americas led regional growth at +12%; Greater China up 9%
• EMEIA region fell 3%, hurt by Middle East conflict weighing on tourist spending
• Stock fell nearly 6% in London trading following the results
• Full-year guidance reiterated; wholesale H1 FY27 guidance raised to high-single-digit growth

---

Burberry reported first-quarter retail sales growth of 5% on Friday, with revenue reaching £455 million. That matched forecasts on paper, but the market wasn’t impressed — the stock fell nearly 6% in London trading.

Burberry Q1 2026 Trading Update
-Retail Comp Sales +5% (est +5.22%)
-Retail Sales GBP 455m (est GBP 454.9m)
-Greater China Comp Sales +9% (est +9.98%)
-ENEIA Comp Sales -3% (est -2.33%)

— LiveSquawk (@LiveSquawk) July 17, 2026

The comparable sales figure of 5% came in below what analysts had pencilled in, and that gap was enough to send the stock lower. At its trough, BRBY slid to around 1,052p.

The Americas was the standout performer, up 12%, driven by local demand and broad-based customer acquisition. Greater China added 9%, helped by strong Gen-Z demand.

Burberry Group plc, BURBY

Asia Pacific grew 3%, though a solid 11% gain in South Korea was partially offset by a 2% decline in Japan, tied to weaker inbound tourism from China.

Where It Hurt

EMEIA was the weak spot. Sales in the region fell 3%, with management pointing to the ongoing Middle East conflict and reduced tourist spending. Strip out the Middle East, and the region was still down 1%.

CEO Joshua Schulman highlighted that all four divisions — Womenswear, Menswear, Accessories, and Childrenswear — returned to growth for the first time in three years. Outerwear led the charge, rising by double digits.

Morgan Stanley called it “a further solid step in the right direction,” noting the result came despite a tougher comparison base and increased Middle East headwinds.

Burberry raised its H1 FY27 wholesale guidance to high-single-digit percentage growth, citing a positive response from partners.

Costs and Outlook

The company reiterated its full-year targets, including revenue growth and margin expansion. It expects annualised cost savings of £100 million by FY27, with £80 million already delivered in FY26.

Capital expenditure is guided at around £120 million. Currency is expected to provide a roughly £20 million tailwind to revenue, with a broadly neutral impact on adjusted operating profit.

Management flagged awareness of the “uncertain geopolitical and macroeconomic environment” and its potential effect on consumer confidence.

On the charts, BRBY has fallen from a January high of 1,377p to around 1,063p, sitting below both the 50-day and 100-day EMAs. The stock has formed a descending triangle pattern, with key support sitting at 1,025p.

Burberry’s “Portraits of an Icon” campaign was cited by management as supporting brand momentum, alongside maintained market share in outerwear and scarves.