Burberry, the iconic British luxury fashion brand, has reported a growth in sales for the first half of 2026, driven by strong performance in the Americas and Asia. The company's revenue rose 12% year-on-year to £1.8 billion, marking a significant turnaround from previous years. However, Burberry warned that the ongoing Middle East conflict continues to drag on European sales, with shoppers in the region still feeling the impact.
The conflict has disrupted supply chains and affected consumer sentiment, leading to a decline in sales across Europe. Burberry's European sales fell 6% year-on-year, while sales in the Americas and Asia rose 18% and 15% respectively. The company's positive trends in the US and China are a significant boost, as these markets continue to drive growth in the luxury fashion industry.
Burberry's chief executive, Bernhard Bürke, said the company was 'pleased' with the growth in sales, but acknowledged the ongoing challenges in Europe. 'We continue to monitor the situation closely and are working with our partners to mitigate the impact,' he said. The company has not provided a specific forecast for the second half of the year, but warned that the Middle East conflict remains a significant risk to its European sales.
The Middle East conflict has had a significant impact on the luxury fashion industry, with many brands reporting declines in sales. Burberry's warning is a reminder that the conflict continues to affect consumer sentiment and spending habits across Europe. The UK Government has not commented on the impact of the conflict on British businesses, but the Foreign Office has advised against non-essential travel to affected areas.
Burberry's growth in sales is a welcome boost for the UK's luxury fashion industry, which has been struggling in recent years. The company's positive trends in the US and China are a significant opportunity for growth, and the UK Government may be looking to support British businesses in these markets.