Burberry Group (BRBY) H1 2026 earnings summary

Executive summary

• Sequential improvement in customer growth, with new and returning customers responding strongly to autumn and winter collections and brand desirability increasing due to successful marketing and product innovation.

• Retail comp sales returned to growth in Q2 for the first time in two years, with positive customer response to new collections and improved brand desirability.

• Strategic focus on restoring profitability, rebuilding gross margin, and driving sustainable performance through the Burberry Forward plan.

• Wholesale partners showed increased confidence, reflected in higher orders for upcoming collections and positive reaction to new collections.

• The Burberry Forward transformation programme is driving brand revitalization and operational improvements.

Financial highlights

• Total revenue for H1 was £1.03 billion, down 3% at constant exchange rates and 5% on a reported basis year-over-year.

• Comparable retail sales were flat for H1, with Q2 delivering 2% growth year-over-year.

• Adjusted operating profit was £19 million, with an operating margin at 1.9% reported and 1.8% CER.

• Gross margin improved by 410 basis points year-over-year to 67.9%, mainly due to healthier inventory and less discounting.

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

Outlook and guidance

• Full-year guidance unchanged: restructuring costs expected at £50 million, annualized savings of £80 million targeted for FY26.

• Retail space to remain broadly flat; wholesale revenue expected to decline mid-single digits for the year, returning to growth in H2.

• Capital expenditure forecast at £120 million, lower than initial guidance.

• Currency expected to be a headwind of £50 million on revenue and £5 million on operating profit.

• The company expects continued margin improvement, focusing on simplification, productivity, and cash flow.