{"id":29413,"date":"2026-05-14T13:18:22","date_gmt":"2026-05-14T13:18:22","guid":{"rendered":"https:\/\/hunthow.com\/?p=29413"},"modified":"2026-05-14T13:18:22","modified_gmt":"2026-05-14T13:18:22","slug":"burberry-hits-profit-as-turnaround-kicks-in","status":"publish","type":"post","link":"https:\/\/hunthow.com\/?p=29413","title":{"rendered":"Burberry Hits Profit, as Turnaround Kicks In"},"content":{"rendered":"


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Burberry revenues reached \u00a32.42 billion for the 2026 fiscal year, ended March 28. Despite flat year-on-year growth, profitability improved, and the company expects to deliver both revenue growth and margin expansion in 2027.<\/p>\n

Adjusted operating profit improved significantly from \u00a326 million in 2025 to \u00a3160 million. Gross profit rose 9% and gross margin lifted 5.3%, driven by higher quality sales off the back of last year\u2019s inventory reset<\/a>. Adjusted operating margin improved from 1% last year to 6.6% in 2026, while reported operating profit swung from a \u00a33 million loss to a \u00a3115 million profit.<\/p>\n

\u201cThis is evidence that our Burberry Forward strategy is working,\u201d Burberry CEO Joshua Schulman said on Thursday\u2019s earnings call. Schulman launched the strategy a year and a half ago<\/a>, shortly after joining the brand<\/a>. The aim is to reignite brand desire and improve performance by reconnecting Burberry with its original purpose and audience. Cost savings are also part of the plan, with the company anticipating an additional \u00a320 million in 2027, on top of the \u00a380 million delivered this year.<\/p>\n

Comparable store sales were up 2% in 2026, after a return to growth from Q2, and particular improvement across Greater China and the Americas, which were both up 10% in Q4. In EMEIA (Europe, the Middle East, India, and Africa), comparable store sales were flat for the year, with a 2% decline in Q4 due to the Middle East conflict.<\/p>\n

\u201cWe have not seen the impact of the war in the Middle East beyond the Middle East [region] itself, and some impact on travel in EMEIA. It\u2019s been quite localized,\u201d said Schulman, adding that the Middle East accounts for 2% of Burberry\u2019s total sales. CFO Kate Ferry highlighted strong momentum among American tourists visiting Europe, however.<\/p>\n

Sales in the Americas and Greater China were up 4% for both regions. In China, the brand\u2019s largest market, which represents over 30% of sales, growth was driven by local spend. Burberry is expanding its marketing efforts<\/a> in the region through a series of documentary films produced in partnership with magazine Chinese National Geography<\/em>; they will feature local talent, wearing seasonal outerwear styles, exploring the country\u2019s natural landscape and historic sites. Burberry also plans to host a \u201clarge-scale brand experience\u201d in Shanghai later this year to close its 170th-anniversary celebrations. In Asia-Pacific \u2014 Japan, South Korea, Southeast Asia, Australia, New Zealand \u2014 sales were up 2%.<\/p>\n

Sales from Burberry\u2019s core categories \u2014 outerwear and scarves \u2014 were each up double digits in the second half of the year. The brand rolled out 200 scarf bars across its stores in 2026, a merchandising strategy to reignite excitement around the category.<\/p>\n

Licensing sales \u2014 accounting for fragrance, beauty, and eyewear \u2014 declined 9%, in line with company expectations. It destocked old fragrance lines as part of its Burberry Forward strategy. \u201cOur license categories have longer lead times, and we are excited that in 2027 we are finally starting to align our licensees with the [new] brand expression,\u201d said Schulman. In beauty, Burberry has updated its marketing with a campaign featuring musician Olivia Dean in a Burberry trench coat against a London landscape. In eyewear, Schulman said Burberry has moved from a \u201cniche aesthetic without a clear connection to our brand codes\u201d to a \u201cmore recognizable and desirable expression\u201d aligned with its fashion branding.<\/p>\n

Ahead of the earnings announcement, chair Gerry Murphy announced his retirement after eight years in the role, effective November 2026. He will be succeeded by William Jackson, founder of private investment firm Bridgepoint Group, who will join initially as a non-executive director in July.<\/p>\n

Despite being cautious about the macro environment, Schulman was positive about Burberry\u2019s growth potential. \u201cOver the past year, we have made significant progress, guided by our Burberry Forward strategy. We are seeing the impact on our business and our financial performance,\u201d the CEO told investors. \u201cGoing forward, we are now focused on delivering sustainable profitable growth, operating with greater discipline across the organization, driven by a mindset of saving to reinvest and fuel growth. We\u2019re just getting started.\u201d<\/p>\n<\/div>\n


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Burberry revenues reached \u00a32.42 billion for the 2026 fiscal year, ended March 28. Despite flat year-on-year growth, profitability improved, and the company expects to deliver both revenue growth and margin expansion in 2027. Adjusted operating profit improved significantly from \u00a326…<\/p>\n","protected":false},"author":1,"featured_media":29414,"comment_status":"","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[125],"tags":[],"class_list":["post-29413","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-fashion"],"_links":{"self":[{"href":"https:\/\/hunthow.com\/index.php?rest_route=\/wp\/v2\/posts\/29413","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/hunthow.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/hunthow.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/hunthow.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/hunthow.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=29413"}],"version-history":[{"count":0,"href":"https:\/\/hunthow.com\/index.php?rest_route=\/wp\/v2\/posts\/29413\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/hunthow.com\/index.php?rest_route=\/wp\/v2\/media\/29414"}],"wp:attachment":[{"href":"https:\/\/hunthow.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=29413"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/hunthow.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=29413"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/hunthow.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=29413"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}