Burberry shares dropped more than 6% after the luxury fashion house said conflict in the Middle East was weighing on tourist spending across Europe. Sales in the Europe, Middle East and Africa region fell 3% in the April–June quarter, a decline the company attributed to the Iran war and weaker visitor purchases.
Overall first-quarter revenue rose to £455 million, up from £433 million a year earlier, supported by 12% growth in the Americas and a 9% increase in greater China. Outerwear sales climbed by double digits. Chief executive Joshua Schulman called on incoming Prime Minister Andy Burnham to reinstate tax-free shopping for tourists, which was abolished in early 2021.
At Burberry's annual general meeting on Wednesday, 35.4% of shareholders voted against the directors' remuneration policy, which could see Schulman earn up to £12.2 million if performance and share price targets are met. The company's Burberry Forward turnaround strategy, launched in late 2024, targets £100 million in annual cost savings by 2027, partly through cutting around 1,700 jobs globally.