Burberry returns to profitability as first-half revenue rises by 6 percent

British luxury fashion house Burberry Group plc has reported a return to profitability for the 26 weeks ended September 26, 2026. Revenue rose 6 percent year-over-year (YoY) on both a reported and constant exchange rate (CER) basis to 1.10 billion pounds (1.46 billion dollars), up from 1.03 billion pounds in the prior-year period.

Burberry swings to profit

Operating profit reached 54 million pounds, compared to an operating loss of 18 million pounds in the first half of fiscal year 2026. Adjusted operating profit increased to 62 million pounds, lifting the adjusted operating margin by 390 basis points at CER to 5.7 percent.

Profit after tax for the period stood at 6 million pounds, reversing a net loss of 27 million pounds a year earlier. Diluted earnings per share came in at 1.8 pence, compared to a loss per share of 7.1 pence in the comparative period.

“Two years ago, we launched Burberry Forward,” said Burberry CEO Joshua Schulman. “Today, our brand and our business are stronger. Five consecutive quarters of growth and improved quality of sales demonstrate that our strategy is working.”

Regional and channel performance

Comparable retail sales increased 4 percent in both the second quarter and the first half, with e-commerce revenue growing in the mid-teens. Wholesale revenue advanced 17 percent at CER and 18 percent at reported rates to 174 million pounds, while licensing revenue declined 5 percent to 28 million pounds.

Performance across key geographic regions showed varied momentum during the first half:

• Americas comparable retail sales grew 12 percent, driven by local customer demand and store conversion
• Greater China comparable retail sales rose 7 percent, supported by local spending and intraregional tourism
• Asia Pacific comparable retail sales increased 3 percent, aided by 12 percent growth in South Korea during the second quarter despite a 1 percent decline in Japan
• Europe, Middle East, India and Africa (EMEIA) comparable retail sales fell 2 percent due to reduced tourist activity and softer outlet traffic

Category growth and FY27 outlook

All core product divisions recorded expansion during the 26-week period. Accessories remained the largest revenue contributor at 365 million pounds, up 6 percent YoY, followed by womenswear at 342 million pounds, menswear at 318 million pounds, and kidswear and other categories at 45 million pounds. Outerwear achieved double-digit growth across the half, while leathergoods accelerated in the second quarter.

Gross margin improved 40 basis points at CER to 68.3 percent, reflecting higher full-price sales quality and a one-off supply chain rebate. Free cash outflow widened to 147 million pounds from 50 million pounds in the prior year, primarily due to a 197 million pound working capital outflow as inventory normalised ahead of the peak selling season. Net debt stood at 988 million pounds at period end, bringing the net debt to adjusted EBITDA ratio to 1.7 times.

Looking ahead to the full year, Burberry expects retail space to remain broadly stable and wholesale revenue to grow between 10 percent and 12 percent at CER. Annualised operating expense savings are projected at approximately 100 million pounds, with capital expenditure forecast at around 100 million pounds. The London-based group will host a capital markets day for investors and analysts in March 2027.