Burberry has reported a 3% decline in first-half (H1) fiscal year 2026 (FY26) revenue to £1.03bn ($1.35bn) for the 26 weeks ended 27 September 2025, while comparable retail sales returned to growth in the second quarter (Q2).  

Comparable sales rose 2% in Q2, for the first time in two years, improving on the 1% fall recorded in Q1. 

However, the overall group comparable store sales for Burberry in H1 FY26 were flat, with decline in Asia Pacific largely offsetting the growth in EMEIA (Europe, the Middle East, India and Africa) and the Americas. 

The British luxury fashion house posted an adjusted operating profit of £19m in H1, reversing  a loss of £41m a year earlier.  

Gross margin stood at 67.9%, up 450bps at reported rates compared with 63.4% in the previous year. The improvement was driven by the absence of non-recurring inventory headwinds that had impacted the previous year's results. 

Adjusted operating margin improved to 1.9% from a negative 3.8% the year before.  

Reported operating loss narrowed to £18m from £53m, while free cash outflow decreased to £50m from £184m. 

The company described customer response to its Autumn/Winter 2025 collections as strong, with momentum broadening beyond outerwear and scarves. 

Burberry reported progress on in-store upgrades, including enhanced displays and new clientele tools, and stated that more than 100 scarf bars had been launched, with a target of 200 by the end of 2025..  

Its cost-efficiency programme is on track to deliver £80m in annualised savings by the end of FY26. 

The company remains in the early stages of its turnaround and expects its initiatives to build, with continued margin improvement supported by various measures including simplification. 

Burberry CEO Joshua Schulman stated: “While it is still early days and there is more to do, we now have proof points that Burberry Forward is the right strategic path to restore brand relevance and value creation.”