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Wholesale revenue — which accounts for 13% of total sales — declined 11% in H1, slightly better than guidance, thanks to a strong performance from strategic partners across luxury multi-brand retailers, US department stores and travel retail. “Wholesale serves several very important purposes. Our opinion-leading digital wholesale customers are the ideal place for customers to discover the evolution of Burberry alongside our luxury peers,” said Schulman. “We’ve seen growth in our wholesale order book from these opinion-leading wholesale customers globally who are enthusiastic about the new direct direction of Burberry.” EMEIA (Europe, the Middle East, India and Africa) comparable store sales rose 1% in H1 (up 1% in both Q1 and Q2). Sales in the Americas grew 3% in the first half of the year (up 4% in Q1 and 3% in Q2). “The US was the first region to return to growth, and what we’ve seen is that the brand expression and the way that we’re showing up at retail in exciting ways is really resonating with the customer there. Our team in the US has been very creative — in a market where retail traffic is so-so — about how they’re going to the customer,” said Schulman, noting a VIC event in the Hamptons over the summer and a similar activation in Aspen planned for the winter.No Garbage In America Shirt
Greater China led with the strongest improvement, with 3% comparable retail sales growth in Q2, an improvement on last quarter’s 5% decline. Asia-Pacific sales declined 2% in H1, improving from -4% in Q1 to 0% in Q2. Burberry is seeing new customer growth among Gen Z, especially in China. “I was just in China a few weeks ago and walking through the stores with our teams there, and they were sharing how the evolution in our collection architecture is attracting different customer profiles to the brand,” said Schulman. “I think in the past, there may have been an idea that in order to attract younger customers in China, you need to be super edgy and do what other brands are doing. But actually, what’s working in China now is authenticity — we’re seeing that across all of our customer archetypes.”
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