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 (Q4) in China and the Americas, improved gross margin, and cost savings under its Burberry Forward strategy.
The revenue of the company in FY26 stood at £2.42 billion (~$3.27 billion), while retail comparable store sales were up 2 per cent, while adjusted operating profit rose to £160 million (~$216 million). Adjusted operating margin improved to 6.6 per cent from 1 per cent, a gain of 560 basis points (bps) at reported rates and 570 bps at constant exchange rates.
“This financial year marks a meaningful inflection point for Burberry. We have returned to profitable comparable sales growth, with a strong Q4 driven by momentum in China and Americas,” said Joshua Schulman, chief executive officer (CEO) at Burberry.
“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,” added Schulman.
Comparable sales return to growth
Operating profit reached £115 million (~$155.25 million), compared with a loss of £3 million in the previous year. Reported operating margin improved to 4.8 per cent from minus 0.1 per cent. 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 EPS 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 Q2, with sequential improvement through the year. Q4 was particularly strong in China and the Americas, both of which grew by double digits. Group comparable store sales rose 5 per cent in Q4 and 2 per cent for the full year.
Europe, Middle East, India and Africa (EMEIA) sales were down 2 per cent in Q4 but flat for the year, while the Americas grew 10 per cent in the quarter and 4 per cent for the year. China rose 10 per cent in Q4 and 4 per cent for the year, while Asia Pacific increased 3 per cent in the quarter and 2 per cent for the year.
The company said it had reignited brand momentum through improved cultural relevance and strengthened its authority in outerwear and scarves, both of which grew by double digits in the second half. It also enhanced the in-store experience through cross-category merchandising and store productivity initiatives, including the launch of 200 scarf bars in FY26.
The 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 after the FY25 inventory reset. Burberry also achieved £80 million in operating expenditure savings during FY26, while continuing to invest in growth-driving initiatives, including marketing.
Burberry expects revenue growth, margin expansion in FY27
For FY27, Burberry expects to make further progress on revenue growth and margin expansion, although it remains mindful of geopolitical and macroeconomic uncertainty and its possible impact on consumer confidence. Retail space is expected to remain broadly stable, while wholesale revenue is forecast to grow by a mid-single-digit percentage in the first half of FY27. Annualised cost savings are expected to reach £100 million by FY27, including the £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 chair with effect from the date of the company’s interim results 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.
Fibre2Fashion News Desk (SG)
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