Burberry Shares Soar 8% as British Heritage Strategy Wins Back U.S. Shoppers

Burberry is showing early signs of a successful turnaround. In its fiscal Q1 results, the iconic British luxury brand reported a 4% year-on-year increase in sales in the Americas—a key market that had been declining in previous quarters. The news sent Burberry shares up 8.13% by mid-morning on the London Stock Exchange.

A Strategic Shift Back to British Roots

Burberry’s recent success stems from a renewed focus on its British heritage and iconic products, such as the trench coat and signature check pattern. CEO Joshua Schulman credited the rebound in U.S. sales to both new and returning customers, ranging from luxury spenders to everyday mall shoppers.

“The diversity of the luxury consumer in the U.S. is real,” Schulman noted, emphasizing the brand’s efforts to position itself as a luxury house with broad universal appeal.

With the U.S. now accounting for 19% of Burberry’s global business, this shift toward heritage branding and more competitive pricing appears to be resonating strongly.

Modest Global Decline, But Stronger Outlook

Despite the gains in the Americas, overall group revenue declined 1% year-on-year on a comparable basis, totaling £433 million ($582 million) for the quarter ending June 28. This was better than the 3% drop analysts had expected, showing resilience across multiple regions.

EMEIA (Europe, Middle East, India & Africa): +1%

Greater China: -5%

Asia Pacific: -4% (driven by Japan and slower tourism)

Still, each region showed sequential improvement from prior quarters, signaling early momentum across the board.

Challenges Ahead: Tariffs & China Slowdown

Burberry’s path forward is not without hurdles. Looming U.S. tariffs and continued weakness in China pose significant risks for the global luxury market. CFO Kate Ferry acknowledged the tariffs as a “headwind” but said the company had adjusted its supply chains and pricing in anticipation.

“We took a very surgical approach to pricing in the U.S.,” she said during the earnings call, “focusing on areas where we had pricing elasticity.”

Restructuring in Motion: Jobs Cut, Costs Down

The update also comes amid a major transformation at Burberry, including a cost-cutting plan and 1,700 job reductions, expected to save £80 million annually by 2026. This marks a pivotal moment in CEO Joshua Schulman’s first year in charge, after taking the helm in July last year from Michael Kors.

UBS analysts expressed renewed optimism, saying Burberry’s brand momentum is “accelerating.” Meanwhile, industry experts noted that the upcoming Fall/Winter collection will fully reflect Schulman’s marketing vision focused on Britishness and authenticity.

Positive Signals for Investors and the Market

According to Luca Solca from Bernstein, “The fact that organic growth is improving—even if still negative—is a sign that the new marketing approach is working. We expect even better performance in the second half of the year.”

Conclusion:

Burberry’s return to its British heritage and brand authenticity is paying off—especially in the critical U.S. market. While global headwinds remain, the early success of its turnaround plan, strengthened by targeted pricing and strategic restructuring, suggests that Burberry could be on the path to reclaiming its place among the world’s top luxury brands.