The news: Burberry credited an uptick in Gen Z customers—particularly in China—for its better-than-expected performance during the last quarter of 2025.
- The company reported a double-digit increase in Gen Z shoppers in Greater China and Asia-Pacific, as well as “strengthening reach” among younger consumers across all geographies.
- Those customers helped drive a 3% YoY increase in global comparable sales for the 13 weeks ended December 27, with particular strength in China (up 6%) and Asia-Pacific (up 5%).
The strategy: Burberry’s efforts to reposition its brand as a more accessible luxury label and lean into its British heritage are resonating with shoppers worldwide. Both of its “hero” categories, outerwear and scarves, posted double-digit sales growth in the quarter, suggesting consumers are gravitating to pieces that are more affordable but are also willing to splurge on investment items like Burberry’s iconic trench coats.
The brand is also benefiting from signs of recovery in China’s personal luxury market, which we expect to post 5.4% growth this year after contracting in 2025. LVMH, Kering, Prada, and Hermès pointed to sequential improvement in demand in Q3 2025, potentially supported by stock market gains and stabilizing property prices in Tier 1 cities.
Implications for the luxury industry: It’s too early to interpret Burberry’s solid quarter as evidence of a successful turnaround—for the brand as well as for China’s struggling luxury market. While Burberry’s Gen Z gains are an encouraging sign of cultural relevance, the generation is notoriously fickle and has high standards for luxury brands.
- To stay relevant with Gen Z consumers, Burberry—and the rest of its luxury peers—will need to invest heavily in marketing, particularly in experiential activations that allow would-be shoppers to interact with products and witness the high-touch experience luxury is known for.
- At the same time, brands can’t forget about the aspirational consumer. Promoting lower-cost items like scarves and beauty products can help get those shoppers back into stores, driving growth in an uncertain market.