Burberry Group (BRBY) H2 2026 earnings summary

Executive summary

• Returned to positive comparable sales with sequential momentum, especially strong in Greater China and the Americas, both up 10% in Q4.

• Brand momentum reignited, attracting Gen Z customers and improving cultural relevance, with authority in outerwear and scarves.

• Significant increase in gross margin and operating profit, with strengthened balance sheet and reduced leverage.

Financial highlights

• Comparable sales grew 2% for the year, with Q4 Group comp up 5%; Greater China and Americas both up 10% in Q4.

• Gross margin improved by 530 bps to 67.9% at constant exchange rates.

• Adjusted operating profit rose to GBP 160 million from GBP 26 million last year; margin expanded to 6.6%.

• Free cash flow increased to GBP 141 million from GBP 65 million; cost savings of GBP 80 million delivered in FY 2026.

• Total revenue stable at constant exchange rates, down 2% on a reported basis.

Outlook and guidance

• FY 2027 expected to deliver further revenue growth and margin expansion, mindful of macroeconomic and geopolitical uncertainty.

• Retail space to remain stable; wholesale revenue to grow mid-single digits in H1 FY 2027.

• Annualized cost savings to reach GBP 100 million; capital expenditure expected at GBP 120 million.

• Currency expected to be a GBP 10 million headwind on both revenue and adjusted operating profit.

• Effective tax rate projected between 27% and 30%.