Burberry Group plc (OTC: BURBY; LSE: BRBY) reported preliminary results for the 52 weeks ended March 28, 2026, showing early progress under its “Burberry Forward” transformation plan. The British luxury fashion house, known for its trench coats, scarves, accessories, and check pattern, said the year marked a “meaningful inflection point” as comparable sales returned to growth and profitability improved.
For FY26, Burberry reported revenue of £2.42 billion, down 2% on a reported basis but flat at constant exchange rates. This was broadly in line with company-compiled analyst consensus of £2.43 billion. The company’s adjusted operating profit rose sharply to £160 million, compared with £26 million a year earlier, ahead of consensus expectations of £154 million.
Burberry’s profitability also improved meaningfully. Adjusted operating margin increased to 6.6%, up from 1.0% in FY25, supported by gross margin expansion and cost savings. Reported operating profit was £115 million, compared with a £3 million loss in the prior year. Reported diluted EPS was 5.9 pence, while adjusted diluted EPS was 15.2 pence.
Recent sales trends were more encouraging. Comparable retail sales increased 5% in Q4, matching analyst consensus, while full-year comparable retail sales rose 2%. Q4 growth was led by 10% gains in both Greater China and the Americas, while EMEIA declined 2% and Asia Pacific rose 3%.
The turnaround is showing signs of traction, but investors remain cautious. Reuters reported that Burberry shares fell after the results, as weakness in Europe and the Middle East weighed on sentiment despite stronger performances in China and the Americas. The company also stopped short of reinstating its annual dividend. Burberry’s balance sheet improved, according to management. The company reported £141 million of free cash flow, up 120% from the prior year, and said leverage improved to 1.6x.
