Burberry sales jump: are luxury goods back in fashion in China amid tech wealth?
Burberry and Cartier see sales surge in China, driven by Gen Z and tech wealth, but recovery remains uncertain amid economic challenges
British luxury brand Burberry saw 5 per cent year-on-year sales growth to £455 million (US$606 million) in the first quarter of fiscal 2027 ending June 27, led by continued strength in the Americas and Greater China, the company said in its quarterly earnings report on July 17.
Sales in Greater China, including the Chinese mainland, Hong Kong, Macau and Taiwan, rose by 9 per cent year on year, in line with the previous quarter, driven by local demand and outsize growth from Gen Z consumers, the London-listed brand said.
“I do see good long-term potential for Chinese demand alongside some pent-up demand from unspent Covid-19 times savings, once the sentiment improves,” said Jelena Sokolova, a London-based senior equity analyst at Morningstar.
She added that these were tepid signs of recovery, but it was too early to judge how sustainable it was and whether it would be limited to certain brands or broad-based.
“There is still wealth and high-wage job creation in areas like technology (in China), although some areas are still cause for concern, such as youth unemployment and the housing market,” said Sokolova.