Burberry Group reported improved profitability and a return to comparable sales growth for the financial year ended 28 March 2026, supported by stronger demand in the second half and cost-saving measures.
The British luxury retailer said comparable store sales returned to growth from the second quarter onwards, with performance improving sequentially through the year.
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Adjusted operating profit increased to £160m ($213.6m) from £26m in the previous year while adjusted operating margin rose to 6.6% from 1% in fiscal 2025 (FY25).
The company attributed the margin improvement partly to £80m in operating expense savings achieved during the year.
Revenue declined 2% year-on-year to £2.42bn at reported exchange rates.
However, attributable profit reached £21m, compared with an attributable loss of £75m in FY25.
Retail comparable store sales rose 2% during FY26, recovering from a 12% decline a year earlier.
Fourth-quarter (Q4) comparable sales increased 5%.
Comparable sales in the Americas and Greater China each grew 10% during the same quarter while Asia Pacific recorded a 3% increase. However, comparable sales in Europe, the Middle East, India, and Africa (EMEIA) fell 2%.
Adjusted diluted earnings per share came in at 15.2 pence, compared with a loss per share of 14.8 pence in the prior year.
Burberry highlighted strong demand for outerwear and scarves, with both categories posting double-digit growth in the second half.
The company also continued investment in store refurbishments and digital capabilities.
During FY26, Burberry introduced 200 scarf bars and said polo galleries and trench destinations are scheduled for rollout in FY27.
The company added that its balance sheet strengthened over the year, supported by reduced borrowings.
Looking ahead, Burberry said it expects “further progress” in FY27, including revenue growth and margin expansion, while cautioning that geopolitical and macroeconomic uncertainty could affect consumer confidence.
Burberry CEO Joshua Schulman said: “This financial year marks a meaningful inflection point for Burberry. We have returned to profitable comparable sales growth, with a strong fourth quarter driven by momentum in Greater China and the Americas. Our strategy is working, and there are clear opportunities for further growth.
“As we look ahead, while mindful of the uncertain macroeconomic environment, our focus is on disciplined execution of Burberry Forward.”
