Burberry reported revenues of £2.42 billion for the 2026 fiscal year, which ended on March 28. While year-on-year growth was flat, profitability improved, and the company expects to grow both revenue and margins in 2027.

Adjusted operating profit jumped significantly from £26 million in 2025 to £160 million. Gross profit rose 9%, and gross margin improved by 5.3%, thanks to higher-quality sales following last year’s inventory reset. The adjusted operating margin went from 1% last year to 6.6% in 2026, and the reported operating profit turned around from a £3 million loss to a £115 million profit.

“This shows that our Burberry Forward strategy is working,” said CEO Joshua Schulman during Thursday’s earnings call. Schulman launched the strategy about a year and a half ago, shortly after joining the brand. The goal is to boost brand appeal and performance by reconnecting Burberry with its original purpose and audience. Cost savings are also part of the plan, with the company expecting an extra £20 million in 2027, on top of the £80 million saved this year.

Comparable store sales grew 2% in 2026, after returning to growth in the second quarter. There was notable improvement in Greater China and the Americas, both up 10% in the fourth quarter. In EMEIA (Europe, the Middle East, India, and Africa), comparable store sales were flat for the year, with a 2% drop in Q4 due to the Middle East conflict.

“We haven’t seen the war in the Middle East affect areas beyond that region itself, aside from some impact on travel in EMEIA. It’s been quite localized,” Schulman said, adding that the Middle East makes up 2% of Burberry’s total sales. CFO Kate Ferry noted strong momentum from American tourists visiting Europe.

Sales in the Americas and Greater China both rose 4%. In China, Burberry’s largest market, which accounts for over 30% of sales, growth came from local spending. The brand is expanding its marketing in the region through a series of documentary films made in partnership with Chinese National Geography magazine. These films will feature local talent wearing seasonal outerwear while exploring China’s natural landscapes and historic sites. Burberry also plans to host a “large-scale brand experience” in Shanghai later this year to wrap up its 170th-anniversary celebrations. In Asia-Pacific—including Japan, South Korea, Southeast Asia, Australia, and New Zealand—sales were up 2%.

Sales of Burberry’s core categories—outerwear and scarves—each grew by double digits in the second half of the year. The brand introduced 200 scarf bars across its stores in 2026, a merchandising strategy to reignite excitement around the category.

Licensing sales—covering fragrance, beauty, and eyewear—fell 9%, which was in line with expectations. The company cleared out old fragrance lines as part of its Burberry Forward strategy. “Our license categories have longer lead times, and we’re excited that in 2027 we’re finally starting to align our licensees with the new brand expression,” Schulman said. In beauty, Burberry updated its marketing with a campaign featuring musician Olivia Dean in a Burberry trench coat against a London backdrop. In eyewear, Schulman said Burberry has moved from “a niche aesthetic without a clear link to our brand codes” to “a more recognizable and appealing expression” that matches its fashion branding.

Before the earnings announcement, chair Gerry Murphy announced his retirement after eight years in the role, effective November 2026. He will be replaced by William Jackson, founder of private investment firm Bridgepoint Group, who will first join as a non-executive director in July.

While cautious about the macro environment, Schulman was optimistic about Burberry’s growth potential. “Over the past year, we’ve made significant progress, guided by our Burberry Forward strategy. We’re seeing the impact on our business and financial performance,” the CEO told investors. “Going forward…”We’re now focused on achieving sustainable, profitable growth by operating with more discipline across the organization. This is driven by a mindset of saving in order to reinvest and fuel further growth. And we’re just getting started.

Frequently Asked Questions
Here is a list of FAQs about Burberrys return to profit written in a natural conversational tone with clear and direct answers

BeginnerLevel Questions

1 I keep hearing that Burberry is back in profit What does that actually mean
It means that after a period of losing money Burberry is now making more money than it spends Their sales are up and their costs are under control so the company is profitable again

2 What is a turnaround plan
A turnaround plan is a big set of changes a struggling company makes to fix its problems For Burberry this included things like updating its clothing styles focusing on higherend products and improving its stores

3 Why was Burberry struggling in the first place
Burberry was seen as a bit outdated and was selling too many discounted products which hurt its luxury image They also faced tough competition from other highend brands

4 Is this just a shortterm win or is Burberry actually doing well now
Its a positive sign but experts are watching closely The return to profit shows the turnaround plan is working but the company needs to keep it up to prove its a lasting success

5 Does this mean Burberry products are more expensive now
Probably A key part of their plan was to focus on higherpriced luxury items and reduce discounts So yes youll likely see fewer sales and higher average prices

AdvancedLevel Questions

6 What specific changes did Burberrys CEO make to drive this profit
The CEO Jonathan Akeroyd focused on a strategy called Burberry Forward This meant elevating the brand by launching a new more sophisticated collection cutting back on outlet sales and investing heavily in marketing to make the brand feel more exclusive and British

7 How did the new designer Daniel Lee impact the companys profits
Daniel Lees designs were a major part of the plan They created buzz and excitement which drove more fullprice sales His collections helped convince customers that Burberry was a musthave luxury brand again

8 The article mentions results starting to show What key financial numbers should I look for
The most important numbers are