The Tamesis
As of March 28, Burberry’s fiscal year 2026 revenue reached 2.42 billion pounds. Despite flat year-over-year growth, profitability has improved and the company expects revenue growth and margin expansion in 2027.
Adjusted operating profit improved significantly to £160 million from £26 million in 2025. Due to the improvement in sales quality after inventory reset last year, gross profit increased by 9% and gross profit margin increased by 5.3%. Adjusted operating margin improved from 1% last year to 6.6% in 2026, while reported operating profit increased from a loss of £3 million to a profit of £115 million.
“This is proof that our Burberry Forward strategy is working,” Burberry Chief Executive Joshua Schulman said on Thursday’s earnings call. Schulman launched the strategy shortly after joining the brand a year and a half ago. The aim is to reignite brand desire and improve performance by reconnecting Burberry to its original purpose and audience. Cost savings are also part of the plan, with the company expecting to save a further £20m by 2027 on top of the £80m delivered this year.
Comparable store sales rose 2% in 2026, following a return to growth in the second quarter, particularly improvements in Greater China and the Americas, which both grew 10% in the fourth quarter. In EMEIA (Europe, the Middle East, India and Africa), same-store sales were flat for the year and fell 2% in the fourth quarter due to conflict in the Middle East.
“We have yet to see the impact of the war in the Middle East beyond the Middle East [region] itself, as well as some impacts on EMEIA travel. Schulman said: “The Middle East accounts for 2% of Burberry’s total sales. It is quite localized.” However, Chief Financial Officer Kate Ferry emphasized the strong momentum of American tourists traveling to Europe.
Sales in the Americas and Greater China both increased by 4%. China is the brand’s largest market, accounting for more than 30% of sales, with growth driven by local spending. Burberry is expanding its marketing efforts in the region with a series of documentaries produced in partnership with magazines China National Geographic;They will feature local talent wearing seasonal outerwear styles as they explore the country’s natural landscapes and historic sites. Burberry also plans to hold a “large-scale brand experience event” in Shanghai later this year to conclude its 170th anniversary celebrations. In the Asia-Pacific region – Japan, South Korea, Southeast Asia, Australia, New Zealand – sales increased by 2%.
Burberry’s core categories – outerwear and scarves – both saw double-digit sales growth in the second half of the year. The brand is launching 200 scarf styles in its stores in 2026, a marketing strategy aimed at reigniting enthusiasm for the category.
Licensed sales of fragrances, beauty and eyewear fell 9%, in line with company expectations. As part of Burberry’s Forward strategy, the company has reduced stock of older fragrance lines. “Our license categories have longer lead times and we are excited that by 2027 we are finally starting to align our licensees with [new] “Brand expression,” says Schulman. On the beauty front, Burberry updated its marketing campaign, featuring musician Olivia Dean wearing a Burberry trench coat against the London scene. In eyewear, Schulman said Burberry has moved from a “niche aesthetic not clearly linked to our brand code” to a “more recognizable and aspirational expression” in line with its fashion brand.
Ahead of the earnings release, chairman Gerry Murphy announced his retirement from the role, effective November 2026, after eight years in the role. 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.
Despite caution about the macro environment, Schulman remains optimistic about Burberry’s growth potential. “We have made significant progress over the past year, guided by our Burberry Forward strategy. We are seeing the impact this has on our business and financial performance,” the CEO told investors. “Looking ahead, we are now focused on delivering sustainable profitable growth, operating with greater discipline across the organization, driven by a mindset of reinvesting savings and driving growth. We are just getting started.”
