Burberry Group (BRBY) Q1 2026 TU earnings summary

Executive summary

• Comparable retail sales declined 1% year-over-year, with all regions showing sequential improvement from the previous quarter and a significant improvement from the prior quarter's -21% decline.

• Retail revenue was £433 million, down 6% at reported exchange rates and 2% at constant exchange rates, with FX being a significant headwind.

• Brand initiatives included High Summer, Highgrove, Burberry Festival, monthly campaigns, and a refreshed Autumn 25 collection, boosting brand desirability and reaching new audiences.

• Organisational changes and transformation initiatives were implemented to foster collaboration, agility, and cost efficiency.

Financial highlights

• Retail revenue for Q1 FY26 was £433m, down from £458m in Q1 FY25, a 6% decrease at reported FX and 2% at CER.

• Comparable store sales fell 1% year-over-year, with space contributing a 1% headwind.

• Currency movements created a 4% headwind in the quarter.

• E-commerce achieved its third consecutive quarter of growth.

Outlook and guidance

• Margin improvement is expected for the year, with profit and cost savings more heavily weighted to the second half.

• Full-year guidance remains unchanged, with top-line growth expected to be muted and investment prioritized in H1.

• H1 wholesale revenue is projected to decline by a mid-teens percentage, with updates on full-year guidance to come in November.

• Annualised cost savings of £80m are targeted for FY26, with £24m already delivered in FY25.

• Capex is forecast at around £130m for FY26.

• Exchange rate movements are expected to be an £85m headwind on revenue and £15m on adjusted operating profit.