The news: Burberry declined to give a detailed forecast for the next fiscal year, citing “the uncertain geopolitical and macroeconomic environment and its potential impact on consumer confidence.”

However, the company expects both revenues and margins to grow in FY2027 following a solid finish to the fiscal year that ended March 28.

How we got here: Burberry’s decision to overhaul its pricing architecture and focus on hero products like trench coats and scarves contributed to a larger-than-expected increase in comparable sales in its fiscal Q4, driven by strength in China and the US.

• Comparable sales in China, the brand’s largest market, rose 10% YoY as social media virality revitalized Burberry’s appeal to Gen Z shoppers.
• US comparable sales also increased 10%, which the brand credited to successful activations at its own stores and with retail partners like Bloomingdale’s and Net-a-Porter, as well as the popularity of its scarf bars and polo galleries.

Looking ahead, the company is leaning on classic designs and a good-better-best product strategy to attract new customers and increase spending from existing ones. Burberry aims to “have a compelling offer at each price tier” in every product category, enabling it to capture sales from both aspirational shoppers and wealthier consumers willing to drop £3200 ($4,215) on a cashmere coat.

Implications for luxury: Burberry’s momentum, coupled with Coach’s strong showing, shows that there is considerable appetite for accessible luxury, particularly among Gen Z consumers looking for an affordable entry into the market.

At the same time, Burberry’s rejuvenation shows that brands can successfully adjust pricing without losing their cachet—an example that more companies may follow as they look for ways to stay relevant in a challenging market.

This content is part of EMARKETER’s subscription Briefings, where we pair daily updates with data and analysis from forecasts and research reports. Our Briefings prepare you to start your day informed, to provide critical insights in an important meeting, and to understand the context of what’s happening in your industry. Non-clients can click here to get a demo of our full platform and coverage.