Burberry has reported a return to operating profit in the first half, as group revenue rose 6 per cent to £1,098m.
In interim results for the 26 weeks to 26 September 2026, published on 12 November, reported operating profit was £54m, against an £18m loss a year earlier. Adjusted operating profit rose to £62m, from £19m. The adjusted margin was 5.7 per cent, up 390 basis points at constant exchange rates. Comparable retail sales were up 4 per cent in both the first half and the second quarter, the fifth consecutive quarter of growth.
Key figures
- Retail revenue of £896m, up 4 per cent at constant currency, with comparable sales up 4 per cent.
- Wholesale revenue of £174m, up 17 per cent at constant currency, ahead of guidance.
- Licensing revenue down 5 per cent to £28m.
- eCommerce up in the mid-teens.
- Gross margin of 68.3 per cent, up 40 basis points at constant currency.
- Profit before tax of £19m, against a £48m loss a year earlier.
- Free cash outflow of £147m, against a £50m outflow, as inventory was built ahead of peak.
- No interim dividend declared.
Womenswear, menswear, childrenswear and accessories all grew, and outerwear rose by a double-digit percentage. At reported rates, retail and wholesale revenue by destination was up 15 per cent in Greater China and 14 per cent in the Americas, and down 1 per cent in EMEIA, which includes the UK. Comparable retail sales rose 12 per cent in the Americas, 7 per cent in Greater China and 3 per cent in Asia Pacific, and fell 2 per cent in EMEIA. Burberry attributed the EMEIA decline to fewer tourists and weaker footfall, particularly in outlets.
Chief executive Joshua Schulman said the Burberry Forward strategy, launched two years ago, was working. “Having laid the foundations for growth, I am more confident than ever that we will realise the full potential of this extraordinary British luxury brand,” he said.
Burberry expects further revenue growth and margin expansion in the full year, while remaining “mindful of the uncertain external environment”. It expects wholesale to grow by 10 to 12 per cent and retail space to stay broadly stable. Annualised cost savings are expected to reach around £100m, of which £80m was delivered last year. The group ended the half with 412 directly operated stores, after opening seven and closing five.
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