Burberry's Big Win: How a Focus on Heritage and China is Paying Off

Burberry is making a comeback. The luxury brand has just wrapped up a holiday season that exceeded expectations. This is a big deal because, not too long ago, sales were slipping. The new CEO, who took over in mid-2024, has been steering the ship in a new direction. The focus is on classic items like trench coats and scarves, and leaning into the brand's British roots. Plus, they've been cutting costs, including a big workforce reduction last year. The company's stock has been on a roll, up about 29% in 2025. And in the three months leading up to December 27, sales in stores that have been open for a while grew by 3%. That's better than what analysts predicted. A big part of this success is happening in China. Sales there rose by 6%, with a huge boost from Gen Z shoppers. This is a good sign for the whole luxury market, especially in China.Burberry isn't just sitting back and enjoying the success. They're working hard to keep it going. They've been making sure their design and sales teams are on the same page. Plus, they've been running fun holiday campaigns with big-name celebrities. The company is also expecting to meet its profit goals for the year. But here's something interesting: customers are willing to pay full price for Burberry items. This means the brand is doing a good job of making people want their products without slashing prices. It's a smart move that's paying off.