British luxurious vogue home Burberry Group has reported income of £1.03 billion (~$1.36 billion) for the 26 weeks interval ended September 27, 2025, a decline of 5 per cent year-over-year (YoY) at reported change charges and three per cent at fixed change charges. Retail comparable retailer gross sales had been flat for the half, however turned optimistic within the second quarter, with like-for-like development of two per cent following a 1 per cent decline within the first quarter.
The gross revenue rose to £701 million, whereas gross margin expanded sharply to 67.9 per cent from 63.4 per cent, an enchancment of 450 foundation factors (bps) at reported charges (410 bps at fixed change charges). The corporate attributed this largely to non-recurring stock headwinds within the prior 12 months, together with provisioning and stock exits.
Burberry’s H1 FY26 income fell to £1.03 billion (~$1.36 billion), although margins strengthened as gross revenue rose and adjusted working revenue returned to £19 million (~$25.08 million).
Comparable gross sales stabilised, with Q2 development of two per cent.
EMEIA and the Americas grew, whereas Larger China and Asia Pacific improved.
For FY26, Burberry expects retail area to stay broadly unchanged.
The adjusted web working bills fell 7 per cent at reported charges and 5 per cent at fixed change charges to £682 million, reflecting the influence of the continued price effectivity programme and the absence of prior 12 months retailer impairment headwinds, partly offset by inflation and focused investments, Burberry Group mentioned in a press launch.
Consequently, the adjusted working revenue reached £19 million (~$25.08 million) in H1 FY26, in contrast with a £41 million adjusted working loss a 12 months earlier. The adjusted working margin improved to 1.9 per cent from a destructive 3.8 per cent, an uplift of 570 bps at reported charges.
Web finance expense elevated modestly to £30 million from £27 million, resulting in a loss earlier than taxation of £48 million, an enchancment on the £80 million loss a 12 months earlier. The attributable loss to shareholders narrowed to £26 million versus £74 million. Adjusted loss earlier than tax improved to £11 million from £68 million and adjusted diluted earnings per share moved again into optimistic territory at 0.6 pence, versus a lack of 18.3 pence within the prior 12 months. Reported diluted loss per share narrowed to 7.1 pence from 20.8 pence.
The retail section remained the core of the enterprise, accounting for round 85 per cent of retail and wholesale income. Retail gross sales declined by 1 per cent at fixed change charges and three per cent at reported charges within the half, however like-for-like gross sales stabilised general and improved because the half progressed.
Retail income totalled £854 million, down from £885 million a 12 months earlier. Wholesale income fell to £148 million from £169 million, a decline of 12 per cent at reported charges and 11 per cent at fixed change charges, albeit barely higher than steerage for mid-teens declines attributable to phasing and improved in-season orders from strategic companions after stronger sell-out of the Autumn 25 assortment. Burberry reiterated that it intends to function a smaller, higher-quality wholesale enterprise in future.
Europe, Center East, India and Africa (EMEIA) grew 1 per cent for the half, with each quarters delivering 1 per cent development, supported by resilient native buyer spending that offset weaker tourism. The Americas rose 3 per cent in H1 (up 4 per cent in Q1 and three per cent in Q2), pushed by new buyer acquisition, offsetting weaker vacationer visitors in the USA in the course of the summer time.
Larger China declined 1 per cent over the half however returned to development in Q2, with gross sales shifting from a 5 per cent decline in Q1 to a 3 per cent improve in Q2. Development in native prospects partially offset weaker outbound vacationer flows.
Asia Pacific declined 2 per cent in H1 however improved sequentially, from a 4 per cent decline in Q1 to flat in Q2. South Korea was flat for the half (up 2 per cent in Q1 and down 2 per cent in Q2), whereas Japan declined 5 per cent general however swung from a ten per cent decline in Q1 to a 2 per cent improve in Q2.
By division, equipment income declined to £343 million from £367 million, down 7 per cent at reported charges and 4 per cent at fixed change charges. Womenswear was broadly steady at £312 million, flat at reported charges and up 2 per cent at fixed change charges. Menswear income declined to £304 million from £324 million, down 6 per cent at reported charges and three per cent at fixed change charges. Kids’s and different classes fell to £43 million from £50 million.
Burberry continued to refine its retailer portfolio whereas investing in elevated in-store experiences. The group opened 4 shops and closed eleven in the course of the half, ending the interval with 415 instantly operated shops and 31 franchise shops.
The community included 225 full-price shops, 136 concessions and 54 retailers, with Asia Pacific and Larger China representing the biggest retailer bases.
“One year into Burberry Forward, my belief in this extraordinary British luxury house is stronger than ever,” mentioned Joshua Schulman, chief government officer (CEO) at Burberry Group. “With the consistency of our Timeless British Luxury brand expression and an improved product offer, we have begun to see customers return to the brand they love, resulting in comparable store sales growth for the first time in two years. While it is still early days and there is more to do, we now have proof points that Burberry Forward is the right strategic path to restore brand relevance and value creation. We move forward with confidence that Burberry’s best chapters lie ahead.”
For FY26 Burberry is anticipating its retail area to stay broadly steady, whereas wholesale income is projected to say no by a mid-single-digit fee. The corporate anticipates delivering £80 million in annualised price financial savings in FY26, constructing on the £24 million achieved in FY25. Restructuring prices are forecast at round £50 million for the 12 months as a part of the continued transformation. Forex actions, based mostly on spot charges as of October 24, 2025, are anticipated to create headwinds of about £50 million on income and £5 million on adjusted working revenue. Capital expenditure for the 12 months is deliberate at roughly £120 million.
