The company's FY26 revenue was £2.42 billion (~$3.27 billion), while comparable store retail sales rose 2 percent, while adjusted operating profit rose to £160 million (~$216 million). Adjusted operating margin improved to 6.6 percent from 1 percent, a gain of 560 basis points (bps) at reported rates and 570 bps at constant exchange rates.
“This financial year marks a significant turning point for Burberry. We have returned to profitable comparable sales growth, with a strong fourth quarter driven by momentum in China and the Americas,” he said Joshua Schulman, CEO of Burberry.
Burberry has returned to profitable like-for-like sales growth in FY26, with revenue of £2.42 billion (~$3.27 billion) and adjusted operating profit rising to £160 million (~$216 million). Comparable store sales grew 2 percent, driven by strong fourth-quarter momentum in China and the Americas. Gross margin improved to 67.9 percent. The company expects further revenue growth and margin expansion in FY27.
“Our strategy is working and there are clear opportunities for further growth. As we look to the future, while mindful of the uncertain macroeconomic environment, our focus is on the disciplined execution of Burberry Forward. With greater brand relevance and product authority, I am more confident than ever that Burberry is firmly positioned for long-term value creation,” Schulman added.
Comparable sales return to growth
Operating profit reached £115 million (~$155.25 million), compared to a loss of £3 million in the previous year. Reported operating margin improved to 4.8 percent from -0.1 percent. Adjusted diluted earnings per share (EPS) stood at 15.2 pence, compared with a loss of 14.8 pence a year earlier, while reported diluted earnings per share rose to 5.9 pence from a loss of 20.9 pence, Burberry said in a press release.
The company said it returned to comparable sales growth from the second quarter, with sequential improvement throughout the year. The fourth quarter was particularly strong in China and the Americas, where they grew double digits. The group's comparable store sales rose 5 percent in the fourth quarter and 2 percent for the full year.
Sales in Europe, the Middle East, India and Africa (EMEIA) decreased 2 percent in the fourth quarter but were stable over the year, while the Americas grew 10 percent in the quarter and 4 percent over the year. China rose 10 percent in the fourth quarter and 4 percent for the year, while Asia Pacific rose 3 percent for the quarter and 2 percent for the year.
The company said it had reignited the brand's momentum through greater cultural relevance and strengthened its authority in outerwear and scarves, both of which grew double digits in the second half. It also improved the in-store experience through in-store productivity initiatives and cross-category merchandising, including the launch of 200 scarf bars in FY26.
Gross margin stood at 67.9 per cent, up 540 basis points (bps) at reported rates and 530 bps at constant exchange rates, driven by higher quality sales and recovery following the FY25 inventory reset. Burberry also achieved £80 million in operating expense savings during FY26, as it continues to invest in growth-driving initiatives, including marketing.
Burberry expects revenue growth and margin expansion in FY27
For FY27, Burberry expects to make further progress in revenue growth and margin expansion, although it remains mindful of geopolitical and macroeconomic uncertainty and its potential impact on consumer confidence. The retail space is expected to remain broadly flat, while wholesale revenue is forecast to grow by a mid-single digit percentage in the first half of FY27. Annualized cost savings are expected to reach £100 million by FY27, including £80 million delivered in FY26.
Capital expenditure (capex) is expected to be around £120 million, while the adjusted effective tax rate is forecast between 27 per cent and 30 per cent.
The company also announced that Gerry Murphy, who joined the board in May 2018, will retire as chairman effective from the company's interim results date in November 2026. He will be succeeded by William Jackson following a search process led by Orna NiChionna, senior independent director. 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.
Fiber2Fashion News Desk (SG)
