For the 2025-2026 fiscal year, Burberry reported a significant improvement in its financial performance. Over this period, the British luxury giant stated that adjusted operating profit rose to 160 million pounds sterling, up from £26 million a year earlier. The adjusted operating margin reached 6.6%, an increase of 570 basis points at constant exchange rates and 560 basis points at actual rates, bolstered by £80 million in operating expense (Opex) savings achieved during the year.
The company posted earnings per share of £15.2, compared to a loss per share of £14.8 recorded the previous year.
During this fiscal year, the gross margin stood at 67.9%, up 530 basis points at constant exchange rates and 540 basis points at actual rates, driven by improved sales quality and a recovery following the inventory reset of the 2024-2025 fiscal year.
In contrast, annual revenue fell by 2% at actual exchange rates to £2.42 billion, though it remained flat at constant exchange rates. In detail, Burberry confirmed a return to comparable store sales growth starting in the second quarter, with sequential improvement throughout the year. Mainland China and the Americas regions both posted double-digit growth in the fourth quarter.
Total comparable store sales (across all regions) increased by 2%.
The "Outerwear" and "Scarves" segments saw double-digit activity growth in the second half of the year. This favorable momentum extended to other categories.
Furthermore, the group's e-commerce sales grew by nearly 20%, supported by enhancements to the customer experience on the website.
The balance sheet was strengthened by a reduction in debt; the leverage ratio improved to 1.6x.
The group also highlighted its continued investment in growth initiatives, particularly in marketing.
Optimistic outlook
"This financial year marks a decisive turning point for Burberry. We have returned to profitable growth in our comparable store sales, driven by a solid fourth quarter thanks to the momentum observed in Mainland China and the Americas. Our strategy is bearing fruit, and we clearly identify opportunities for further growth," commented Joshua Schulman, CEO of Burberry.
For the upcoming fiscal year (2026-2027), the high-end clothing and accessories manufacturer "expects to reach new milestones." It is targeting revenue growth and margin expansion. However, it remains mindful of the current geopolitical and macroeconomic uncertainty and its potential impact on consumer confidence.
Departure of the Chairman
Alongside this annual publication, in a statement released this Thursday, Burberry formalized the departure of its Chairman, Gerry Murphy. Having joined the Board of Directors in 2018, he will step down from his duties next November. He will be succeeded by William Jackson, who will join the company as a non-executive director on July 1. The latter will stand for election at the Annual General Meeting to be held on July 15.
Burberry Group plc specializes in the design, manufacturing and marketing of top-of-the-range clothes and accessories. Net sales break down by activity as follows:
- retail distribution (84.93%): activity conducted, at the end of March 2026, through a network of 410 stores distributed between company-owned stores (222; Burberry name), concession stores (134), franchised stores (27) and other (54);
- wholesale distribution (12.5%);
- licensed sale (2.6%).
Net sales (not including licensed sale) break down by family of products between accessories (35.1%), men's clothing (30.6%), ladies clothing (30%), and children's clothing (4.3%).
Net sales (not including licensed sale) are distributed geographically as follows: Europe,/Middle East/India/Africa (34.8%), China (28.4%), Asia/Pacific (15.4%), and Americas (21.4%).
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