Burberry Group PLC

Europe's biggest luxury firms are turning more positive on the crucial Chinese market as a fragile spending recovery takes shape. Chinese household consumption is stabilizing and even rebounding in some categories like high-end cosmetics, according to Bloomberg Intelligence analysts. Earnings estimates point to a pickup in performance, with Gucci-owner Kering expected to return to sales growth in the region including China by the fourth quarter, while Burberry reported a 9% jump in retail sales in Greater China in the most recent quarter. LVMH said China appears to be stabilizing after several quarters of deterioration, and smaller players like Moncler are also well positioned. The spending boost is primarily driven by high-net-worth consumers, with the key debate centering on whether improving sentiment can broaden beyond affluent shoppers.

Burberry posted a 5% rise in comparable retail sales for its first quarter, driven by strong momentum in the Americas and Greater China. Retail revenue for the 13 weeks to 27 June 2026 reached £455 million on a reported basis, with constant-currency growth of 4% and a 1% boost from exchange rates. The Americas led with comparable sales up 12%, while Greater China grew 9%, aided by local spending and an expanding Gen Z customer base. Outerwear delivered double-digit growth, and online sales advanced at a mid-teens pace. CEO Joshua Schulman noted that all divisions returned to growth for the first time in three years, reinforcing confidence in the strategy.