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The British luxury house recorded improved profitability in FY26, with gross profit and operating income revitalising.
Financials
10 June, 2026
Table of contents
Burberry Group, Plc. released its preliminary results for the 52 weeks that ended on 28 March 2026 on 14 May 2026. It reported a significant recovery in profitability with a comeback in comparable retail sales growth. The company earned €2,807 billion in revenue during FY26.
Burberry Group delivered a sharp improvement in operating performance with adjusted operating profit increasing to €186 million from €30 million in FY25. Adjusted operating margin hiked to 6,6%, enhancing by 570 basis points at constant exchange rates. The results are supported by tighter cost control, stronger gross margins, and revised full-price sell-through.
It marks a crucial reflection point for the company, followed by several volatile quarters across the wider luxury industry. Burberry Group, Plc. stated that the comparable retail sales came back to normal growth from the Q2. The momentum reinforced throughout the year and sped up particularly in Greater China and the Americas during Q4.
| Company | FY2025/FY26 Revenue | Previous Year Revenue | YoY Change |
|---|---|---|---|
| Burberry | €2,807 billion | €2,855 billion | -2% |
| Moncler Group | €3,109 billion | €2,979 billion | +4% |
| Hermès | €15,170 billion | €13,427 billion | +13% |
| LVMH | €84,683 billion | €86,153 billion | -2% |
The FY26 performance of Burberry Group, Plc. showcased a recovery in profitability, even though there is flat top-line growth. Revenue declined 2% at reported exchange rates to €2,807 billion. Whereas, comparable retail sales rose by 2% during the year after declining 12% in FY25.
The greatest improvement came from recovery in margin and operational discipline. Gross profit hiked by 7% to €1,906 billion, while gross margin extended to 67,9%. This was achieved by tighter inventory management, refined full-price sell-through, and decreased markdown intensity due to FY25’s inventory reset.
Adjusted operating profit increased to €186 million from €30 million in FY25. The improvement was driven by rigid product productivity, €93 million in cost savings and stabilising retail approaches across Greater China and the Americas.
Overall, Burberry Group, Plc. reported a net profitability with attributable profit touching €24 million, compared with a €87 million loss in FY25.
EMEIA remained the largest market of Burberry Group, Plc., generating €952 million in revenue, compared to the decline from €976 million in FY25, amid slower tourist spending and macroeconomic pressure across Europe and the Middle East. Greater China became one of the Group’s strongest-performing regions, with revenue of €777 million from €768 million in FY25, due to the local consumer demand and sturdy sales in Mainland China during the second half.
The Americas earned €586 million in revenue while Asia Pacific declined to €421 million from €442 million in FY25, with the uneven demand conditions in the regional markets. Retail and wholesale revenue reached €2,736 billion, compared with €2,778 billion in the prior year. Licensing revenue declined to €71 million.
| Revenue by Destination | FY26 | FY25 |
|---|---|---|
| EMEIA | €952 million (-2%) | €976 million |
| Greater China | €777 million (+1%) | €768 million |
| Americas | €586 million (-1%) | €592 million |
| Asia Pacific | €421 million (-5%) | €442 million |
| Retail/Wholesale | €2,736 billion (-2%) | €2,778 billion |
| Licensing | €71 million (-8%) | €77 million |
| Total Revenue | €2,807 billion (-2%) | €2,855 billion |
Accessories are in the first position with €971 million in revenue. Womenswear increased to €844 million from €833 million in FY25, assisted by the demand in outerwear and ready-to-wear categories.
Menswear declined to €813 million from €849 million, and Childrenswear and Other categories fell to €108 million. This indicates that Burberry’s growth is concentrated around core heritage categories and higher-productivity segments.
| Revenue by Product | FY26 | FY25 |
|---|---|---|
| Accessories | €971 million (-0,5%) | €976 million |
| Womenswear | €844 million (+1%) | €833 million |
| Menswear | €813 million (-4%) | €849 million |
| Childrenswear & Other | €108 million (-10%) | €121 million |
| Retail/Wholesale | €2,736 billion (-2%) | €2,778 billion |
| Licensing | €71 million (-8%) | €77 million |
| Total Revenue | €2,807 billion (-2%) | €2,855 billion |
Compared with major luxury houses, the FY26 performance of Burberry Group, Plc. shows operational recovery. The Group generated €2,807 billion in revenue, down 2% year-on-year, but delivered a significant improvement in profitability, with adjusted operating profit rising to €186 million from €30 million in FY25.
Hermes International SA stayed one of the strongest-performing luxury companies worldwide during 2025, generating revenue of approximately €16 billion and reporting 9% year-on-year growth at constant exchange rates due to high demand for leather goods, limited supply dynamics, and a highly affluent client base.
LVMH, despite slower conditions across Fashion & Leather Goods, maintained a larger scale and stronger hold through portfolio diversification, generating revenue of approximately €80,8 billion in 2025. Brands like Louis Vuitton and Dior benefitted from global brand power, jewellery exposure, and strong demand from ultra-high-net-worth consumers.
Moncler S.p.A. earned approximately €3.1 billion in revenue during FY2025, recording around 7% growth year-on-year. The group leveraged its high-productivity retail model, focused outerwear positioning, and younger luxury consumer appeal.
Burberry Group, Plc. is still exposed to aspirational luxury consumers and broader voluntary spending cycles. That also makes the Group more vulnerable to fluctuations in consumer confidence and tourism-driven demand. However, FY26 reflected notable progress in improving gross margins, rebuilding profitability, and bolstering full-price sales productivity.
Burberry Group, Plc. went ahead with its turnaround strategy under CEO Joshua Schulman. Alongside improving financial performance, the Group spent much of the year well-positioning its brand identity, simplifying operations and refocusing attention on heritage-driven categories such as outerwear and scarves.
In September 2025, Burberry Group, Plc. appointed Matteo Calonaci as Chief Operating and Supply Chain Officer. Later in the year, the company also named Johnattan Leon as Chief Customer Officer. These changes showcased the Group’s growing focus on execution, productivity and consumer retention as it went deeper into its recovery phase.
Retail strategy also changed a lot throughout FY26. Burberry Group, Plc. opened nine stores and closed 21 during the year, ending March 2026 with 410 directly operated stores worldwide. The closures targeted lower-productivity locations as the company got into a leaner and more profitable retail network.
At the same time, Burberry invested more in improving the in-store experience. During FY26, the company rolled out 200 “Scarf Bars,” a dedicated merchandising space, designed to highlight the strongest-performing category of the brand.
Burberry’s campaigns under Chief Creative Officer Daniel Lee were on “Timeless British Luxury”. Throughout 2025, campaigns featured British personalities such as Olivia Colman, Alexa Chung, Barry Keoghan and Liam Gallagher. It was to help Burberry reconnect with younger consumers while maintaining its heritage positioning.
In its FY26 preliminary results released on 14 May 2026, Burberry Group, Plc. stated that it plans to build on the drive generated during the second half of FY26, particularly in Greater China and the Americas.
For FY27, Burberry is expecting wholesale revenue to grow by a mid-single-digit percentage during the first half of the year. Retail space is planned to remain stable with the Group prioritising productivity and operational efficiency.
The company also aims to deepen its cost optimisation programme. Annualised cost savings are forecasted to reach €116 million by FY27, up from the €93 million achieved in FY26. Restructuring charges are expected to decline significantly to around €6 million. This suggests that the most intensive phase of the Burberry Forward transformation programme is nearing completion.
From a retail perspective, Burberry will be continuing to invest in store productivity initiatives introduced during FY26. Following the rollout of 200 scarf bars worldwide, the Group confirmed that “polo galleries” and “trench destinations” will be expanding across stores in FY27 as part of its strategy to enhance category storytelling.
Cover Image: The Impression.