Burberry Profit Jumps as Sales Grow for Fifth Straight Quarter

British luxury brand Burberry has posted a sharp rise in half-year profit and a fifth consecutive quarter of sales growth, trade publication TheIndustry.fashion reported on Thursday, as its turnaround plan under chief executive Joshua Schulman gathers pace.

Revenue for the 26 weeks to 26 September 2026 came in at £1.098 billion, up 6% year-on-year at constant exchange rates, according to the report. Comparable retail sales rose 4% over the half, the same pace as in the second quarter.

Adjusted operating profit climbed to £62 million from £19 million a year earlier, lifting the adjusted operating margin by 390 basis points to 5.7%. On a reported basis, Burberry recorded an operating profit of £54 million, compared with a loss in the same period last year. Gross margin improved by 40 basis points to 68.3%.

Schulman said the run of growth and better quality of sales showed that “our strategy is working”, TheIndustry.fashion reported.

Regional performance

The Americas led the way with comparable sales growth of 12% in the half, while Greater China rose 7% and Asia Pacific grew 3%, the report said.

The EMEIA region, which covers Europe, the Middle East, India and Africa, was the weak spot, with comparable sales down 2%. The company linked the decline to fewer tourists and softer footfall, especially at its outlet stores.

Wholesale revenue jumped 17% at constant exchange rates, ahead of the company’s own guidance. Outerwear posted double-digit growth, leather goods gained momentum in the second quarter and e-commerce sales rose by a mid-teens percentage, according to TheIndustry.fashion.

Shares and analyst views

Burberry shares jumped almost 10% following the results, investment website The Twelfth Magpie reported. The stock was still down around 10% over one year and 42% over five years, the outlet said.

Analysts were divided on the outlook, according to the same report. Garry White, chief investment commentator at Raymond James, pointed to issues still to be resolved, including weaker aspirational consumers and changing Chinese demand. Chris Beauchamp, chief market analyst at IG, was more upbeat, citing improving sales and stronger demand in the United States.

The Twelfth Magpie also noted that Burberry is not yet paying a dividend.

What’s next

For the full 2027 financial year, Burberry expects revenue growth and margin expansion, while acknowledging an uncertain external environment, TheIndustry.fashion reported.

The company guided for wholesale revenue growth of 10% to 12% and capital expenditure of around £100 million. It is targeting annualised cost savings of about £100 million in FY27, after delivering £80 million in FY26.

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