Burberry Group (BRBY) H1 2026 earnings summary

Executive summary

• Sequential improvement in new and returning customers, with brand desirability increasing and positive wholesale partner feedback on new collections.

• Returned to comparable store sales growth in Q2 after two years of declines, with full price sell-through improving and growth extending beyond outerwear and scarves.

• The Burberry Forward transformation programme is driving brand revitalization, operational improvements, and a strategic focus on timeless British luxury and customer centricity.

Financial highlights

• Total revenue for H1 was £1.03 billion, down 3% at constant exchange rates and 5% reported.

• Gross margin improved to 67.9%, up 410bps at CER and 450bps at reported rates year-over-year.

• Adjusted operating profit reached £19 million, with a margin of 1.9%.

• Free cash outflow was £50 million, an improvement from last year.

• Adjusted operating expenses fell 5% year-over-year at constant exchange rates.

Outlook and guidance

• Full-year guidance unchanged: restructuring costs expected at £50 million, annualized savings of £80 million, and capital expenditure of around £120 million.

• Wholesale revenue expected to decline mid-single digits for the full year, returning to growth in H2.

• Currency headwinds projected to impact revenue by £50 million and adjusted operating profit by £5 million.

• Focus remains on margin improvement, productivity, and cash flow, with continued investment in marketing and product innovation.

• Retail space expected to remain broadly stable in FY26.