Burberry results: adjusted profit triples, comparable sales up 4%

Burberry Group plc presented its unaudited half-year accounts in London on 12 November 2026. The British house more than tripled its adjusted operating profit, driven by its outerwear, leather goods and sales to department stores. Chief executive Joshua Schulman sees it as proof that the Burberry Forward plan, launched two years ago, is working.

1.31 billion euros of sales in the half

Over the 26 weeks ended 26 September 2026, revenue reached 1,098 million pounds, or about 1.31 billion euros, against 1,032 million pounds (about 1.23 billion euros) a year earlier. The increase is 6% at both reported and constant exchange rates. Comparable retail sales, measured on a like-for-like store basis at constant exchange rates, rose 4%, after a flat first half in the previous year. They rose 5% in the first quarter, then 4% in the second.

By channel, retail reached 896 million pounds (about 1.07 billion euros, +4% at constant exchange rates). Wholesale, meaning sales to department stores and partner retailers, jumped 17% at constant exchange rates to 174 million pounds (about 208.1 million euros), ahead of the group’s guidance. Licensing fell 5%.

A 5.7% margin, up from 1.9% a year earlier

Adjusted operating profit rose from 19 million pounds to 62 million pounds, or from about 22.7 to 74.1 million euros: +225% at reported rates, +228% at constant exchange rates. The adjusted operating margin gained 390 basis points at constant exchange rates, to 5.7%. Gross margin reached 68.3%, up 40 basis points at constant exchange rates, thanks to full-price sales and a one-off supply chain rebate. Adjusted net operating expenses were flat at constant exchange rates.

On a reported basis, after 8 million pounds of restructuring costs, operating profit came to 54 million pounds (about 64.6 million euros), against a loss of 18 million pounds a year earlier.

Americas up 12%, Europe down

The Americas led growth, with comparable sales up 12% over the half, driven by local customers. Greater China grew 7%, thanks to local spending and intra-regional tourism, and Asia Pacific 3%, with South Korea up 12% in the second quarter and Japan down 1%. Europe, Middle East, India and Africa fell 2%, hit by fewer tourists and weaker footfall, especially in outlets.

Trench coats, bags, scarves: what drove the house

All four divisions grew. According to the group, outerwear was up by double digits, driven by rainwear, notably lighter tropical gabardine styles and shorter cuts over the summer, followed by new cashmere and leather pieces. Leather goods accelerated in the second quarter, with the Vintage Check and Cotswolds bag families, and silk scarves sold well. E-commerce grew by about 15%. The network had 412 directly operated stores on 26 September 2026, after seven openings and five closures.

Why free cash flow fell

Free cash flow was an outflow of 147 million pounds (about 175.8 million euros), against 50 million pounds a year earlier. Burberry attributes the gap to rebuilding its inventory ahead of the festive peak season and to earlier deliveries. The ratio of net debt to adjusted EBITDA nevertheless improved to 1.7, from 2.2 a year earlier. No interim dividend will be paid.

What is the outlook for 2026-2027?

For the full year, Burberry expects revenue growth and margin expansion, in an environment it describes as uncertain. Wholesale is expected to grow by 10% to 12% over the year, and annualised savings to reach around 100 million pounds (about 119.6 million euros). The group will publish its third-quarter trading update on 21 January 2027 and will host investors and analysts in London in March 2027. For context, see the luxury market in the third quarter of 2026 and the Interbrand 2026 ranking of luxury brands.

Information verified on 12 November 2026. Sources: Burberry Group plc interim results announcement of 12 November 2026, Burberry investor relations, European Central Bank reference rate of 11 November 2026.