Companies

Burberry shows signs of recovery

Nov 20, 2025 United Kingdom

A 2% year-on-year increase in comparable sales in the second quarter of its financial year was reported by the UK-based luxury group. Growth in Greater China also resumed during this period

“One year into Burberry Forward, my belief in this extraordinary British luxury house is stronger than ever. With the consistency of our Timeless British Luxury brand expression and an improved product offer, we have begun to see customers return to the brand they love, resulting in comparable store sales growth for the first time in two years”, commented Joshua Schulman, Chief Executive Officer.

First Half Results

In the first half of 2026 fiscal year, Burberry reported a revenue of 1.03 billion British pounds (1.16 billion euros). This represents a 5% decline, or 3% on a constant basis, as compared to the same period of last fiscal year.

However, it is worth noting that comparable sales were flat during this period, with the company reporting a 1% decline in the first quarter and 2% growth in the second. Moreover, none of the regions reported a negative year-on-year growth in the second quarter, with comparable sales growing by 1% in EMEIA, 3% in the Americas and 3% in Greater China, while remaining flat in the Asia-Pacific region.

Burberry’s gross margin increased by 450 basis points year-on-year to 67.9% in the first half of the current year, thanks to the absence of last year's one-off inventory charges.

The company noted that adjusted operating expenses fell by 5% at constant exchange rates and by 7% on a reported basis, as compared to the first half of the previous year, reflecting ongoing cost-cutting efforts and the reversal of last year’s store impairment costs.

The luxury group reported a first half adjusted operating profit of 19 million British pounds (21.5 million euros), a significant improvement on the 41 million British pounds (46.4 million euros) adjusted operating loss recorded in the same period of fiscal 2025. These improvements lifted the adjusted operating margin to 1.9%, as compared with minus 3.8% in the same period last year.

As a result, Burberry remains on track to achieve 80 million British pounds (90.6 million euros) in annualised cost savings by the end of the year.

“We are still in the early stages of our turnaround, and the macroeconomic environment remains uncertain”, acknowledged the company. “Our focus this year is to build on the early progress we have made in reigniting brand desire, as a key requisite to growing the topline. We expect to see the impact of our initiatives build as the year progresses”.

1 GBP = 1,13 EUR

Image Credits: showstudio.com

United Kingdom Burberry Companies Luxury Quarter Results Results