--- title: "Burberry stated that the Middle East conflict affects travel and luxury consumption, causing its stock price to plummet" type: "News" locale: "en" url: "https://longbridge.com/en/news/293169979.md" description: "Burberry's financial report shows retail revenue reached £455 million, with same-store sales growth of 5%, and strong performance in the US and China markets. However, sales in the EMEA region declined by 3% due to the impact of conflicts in the Middle East, putting pressure on travel consumption. Despite a recovery in fundamentals, geopolitical risks have raised concerns among investors, leading to a decline in stock prices of over 6%. The company expects revenue to grow in the fiscal year 2027" datetime: "2026-07-20T06:14:08.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/293169979.md) - [en](https://longbridge.com/en/news/293169979.md) - [zh-HK](https://longbridge.com/zh-HK/news/293169979.md) --- # Burberry stated that the Middle East conflict affects travel and luxury consumption, causing its stock price to plummet The British luxury brand Burberry reported strong financial performance but stated that the escalation of conflicts in the Middle East has affected tourism consumption in Europe, offsetting growth momentum in the U.S. and Chinese markets; the stock price fell over 6% after the earnings report. According to reports from foreign media, Burberry announced last week that for the quarter ending June 27, retail revenue reached £455 million (approximately $613 million), up from £433 million in the same period last year. This marks the second consecutive quarter of 5% same-store sales growth for the company, indicating that the brand's recovery momentum continues. **(Source: Burberry)** In terms of regional performance, the U.S. and Chinese markets have become the main sources of growth. Sales in the Americas increased by 12% year-on-year, benefiting from an increase in new customers and improved purchasing power among U.S. consumers; sales in the Chinese market grew by 9%. However, sales in the Europe, Middle East, and Africa (EMEA) market declined by 3%, primarily due to the impact of the Iran war. Burberry's Chief Financial Officer Kate Ferry pointed out that the conflict has reduced the willingness of Middle Eastern travelers to shop in Europe and decreased spending by Asian travelers in Europe, making tourism consumption expenditure the most significant source of pressure at present. Burberry noted that although the Middle East directly contributes only about 2% of the company's revenue, geopolitical conflicts have a chain reaction on global travel flows, dragging down the European luxury retail market. Burberry also stated that despite the ongoing uncertainty in the global economic environment, the company still expects revenue growth and improved gross margins for the fiscal year 2027. Burberry's stock price plummeted 6.3% on July 17; the year-to-date decline has reached 20%. Analysts believe that Burberry's plans to reverse the downturn have shown initial results, and the key moving forward will be whether management can maintain growth momentum. While the U.S. and Chinese markets bring hopes of recovery, the global luxury industry still faces challenges such as weak consumer spending, geopolitical risks, and a slowdown in high-end consumption. The U.S.-Iran conflict has recently worsened, with the U.S. resuming large-scale attacks within Iran, while Iran has attacked U.S. bases in the Gulf, leading to a decline in European luxury stocks. (This article is authorized for reprint by MoneyDJ News; main image source: Flickr/Michael Costa CC BY 2.0) ### Related Stocks - [BURBY.US](https://longbridge.com/en/quote/BURBY.US.md) - [BRBY.UK](https://longbridge.com/en/quote/BRBY.UK.md) ## Related News & Research - [REG - Burberry Group PLC Frasers Group PLC - Holding(s) in Company](https://longbridge.com/en/news/294086532.md) - [Frasers builds stake in Burberry to become third largest shareholder](https://longbridge.com/en/news/294092008.md) - [Stocks Pressured by Renewed US-Iran Hostilities](https://longbridge.com/en/news/294221798.md) - [Oil prices tumble after the US and Iran pause fighting over the weekend](https://longbridge.com/en/news/294218059.md) - [Traders Bet Iran Still Wants Peace, Oil Pulls Back](https://longbridge.com/en/news/294376238.md)