Burberry Posts Return to Profitable Growth with FY26 Revenue of £2.42 Billion]

British luxury fashion house Burberry has reported a return to profitable comparable sales growth for fiscal 2026 (FY26) ended March 28, supported by a strong fourth quarter in China and the Americas, improved gross margin, and cost savings under its Burberry Forward strategy.

Revenue for the year stood at £2.42 billion (approximately $3.27 billion), with retail comparable store sales up 2% and adjusted operating profit rising to £160 million (approximately $216 million). Adjusted operating margin improved to 6.6% from 1% a year earlier, representing a gain of 560 basis points.

“Burberry has returned to profitable comparable sales growth, with revenue at £2.42 billion and adjusted operating profit rising to £160 million,” said Joshua Schulman, chief executive officer. “Our strategy is working and there are clear opportunities for further growth. As we look ahead, while mindful of the uncertain macro-economic environment, our focus is on disciplined execution of Burberry Forward. With increased brand relevance and product authority, I am more confident than ever that Burberry is firmly positioned for long-term value creation.”

The company reignited brand momentum through improved cultural relevance and strengthened its authority in outerwear and scarves, both categories showing double-digit growth in the second half. Burberry also enhanced the in-store experience through cross-category merchandising and store productivity initiatives, including the launch of 200 scarf bars during FY26.

Gross margin increased to 67.9%, up 540 basis points from the previous year, driven by higher-quality sales and recovery following the FY25 inventory reset. The company achieved £80 million in operating expenditure savings during FY26 while continuing to invest in growth-driving initiatives, including marketing.

Operating profit reached £115 million compared with a loss of £3 million in the previous year, with reported operating margin improving to 4.8% from minus 0.1%. Adjusted diluted earnings per share stood at 15.2 pence, compared with a loss of 14.8 pence a year earlier.

The business returned to comparable sales growth from Q2, with sequential improvement through the year. Q4 was particularly strong in China and the Americas, both growing by double digits. Group comparable store sales rose 5% in Q4 and 2% for the full year.

Regional performance in Q4 included: China up 10% (4% for the full year), the Americas up 10% (4% for the year), and Asia Pacific up 3% (2% for the year). Europe, Middle East, India and Africa (EMEIA) was down 2% in Q4 but flat for the year.

Looking ahead to FY27, Burberry expects continued progress on revenue growth and margin expansion, while maintaining awareness of geopolitical and macroeconomic uncertainties. Retail space is expected to remain broadly stable, with wholesale revenue forecast to grow by a mid-single-digit percentage in the first half. Annualized cost savings are targeted to reach £100 million by FY27, building on the £80 million delivered in FY26.

Capital expenditure is expected to be around £120 million, with an adjusted effective tax rate forecast between 27% and 30%.

The company also announced that Gerry Murphy, who joined the board in May 2018, will retire as chair from the date of the interim results in November 2026. He will be succeeded by William Jackson following a search process led by senior independent director Orna NiChionna. Jackson will join Burberry as a non-executive director on July 1, 2026, and will stand for election at the annual general meeting on July 15, 2026.

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