Burberry Group (BRBY) H2 2025 earnings summary

Executive summary

• Total revenue was £2.46 billion for the year, with a 17% reported and 15% constant currency decline; comparable retail sales fell 12% year-over-year, improving to a 5-6% decline in the second half and Q4.

• Adjusted operating profit reached £26 million for the year, with H2 profit of £67 million offsetting a £41 million loss in H1.

• Free cash flow was £65 million, supported by cost savings and disciplined capital allocation.

• Strategic focus on reigniting brand desire, optimizing inventory, and cost discipline to stabilize and position for sustainable growth.

Financial highlights

• Revenue fell to £2,461 million from £2,968 million year-over-year, with gross margin dropping to 62.5% from 67.7%.

• Retail revenue declined 11% year-over-year; wholesale revenue decreased 35% in line with guidance.

• Licensing revenue grew 9%, driven by strong performance in fragrance.

• Delivered £24 million in OpEx savings and reduced gross inventory by 7% year-over-year.

• Adjusted diluted EPS was -14.8p, compared to 73.9p last year.

Outlook and guidance

• Targeting £40 million incremental cost savings in FY26, totaling £80 million annualized; £24 million already delivered.

• CapEx expected at £130 million for FY26; retail space to remain broadly flat.

• Wholesale revenue expected to decline by mid-teens % in H1 FY26.

• Currency headwinds anticipated to impact revenue by £55 million and operating profit by £10 million.

• FY26 seen as a year of stabilization, with focus on margin improvement and productivity.