Burberry’s bet on Gen Z shoppers and reviving its British heritage will come under the microscope as investors hope the brand’s cost-cutting is paying off.
The luxury fashion retailer will announce its annual financial results on Thursday, a year after announcing plans to cut a potential 1,700 jobs worldwide.
The cuts were part of a turnaround plan that involved finding cost savings worth £100 million a year by the 2027 financial year.
Its “Burberry Forward” strategy has also involved reviving the brand’s heritage and focusing on bestselling items, like its trench coats and scarves and distinctive check pattern, after efforts to modernise failed to deliver a boost.
Founded in England in 1856, Burberry has come under pressure in recent years from weaker spending across the luxury sector and its key Chinese market being hit particularly hard.
A group of analysts for AJ Bell sad: “A push into ultra-luxury ran into a dead end and the return to a more comfortable fit of so-called ‘everyday luxury’ under current chief executive Joshua Schulman has helped drive a modest recovery in the business.
“Recovering demand in North America and China and a tighter rein on costs have been supportive to Burberry in recent months.”
They added that investors will be “keen to learn if that progress is being maintained” when bosses give an update on Thursday.
Furthermore, experts pointed out that Burberry has been making strides among younger shoppers, as it highlighted a double-digit growth in Gen Z customers in Greater China and Asia Pacific at the start of the year.
Richard Hunter, head of markets for Interactive Investor, said: “Burberry has had a chequered past of late – the shares are down 55% from its most recent peak in April 2023 – but the famous brand is regaining momentum.
“The growth was boosted by sales in both the Greater China and Asia Pacific regions, where the group has revealed double digit growth in Gen Z customers despite intense competition, which not only is a vindication of the new ‘Burberry Forward’ strategy but is also a promising sign of the brand remaining relevant to a younger generation.
“Burberry fully recognises that the transformation is still in its early stages and, at the same time, a brand which had moved away from its traditional British traits of heritage and innovation, which had such appeal to overseas buyers and particularly tourists with an aspirational and stylish look, still needs to be re-established.”
The company is expected to report revenues totalling £2.43 billion for the year to the end of March, which would be broadly flat compared with the year before.
Comparable retail sales for the first three months of 2026 are expected to be 5% higher than the same period a year ago.
