Burberry results reveal first comparable store sales growth in two years

Burberry Group PLC announced its interim results for the 26 weeks ended September 27, 2025, revealing the first comparable store sales growth in two years and providing key proof points for its "Burberry Forward" strategic plan. Burberry's turnaround gained momentum as comparable store sales in the second quarter ended September climbed 2 percent, exceeding market expectations and profitability saw a marked enhancement, with adjusted operating profit reaching 19 million pounds and the gross margin expanding significantly by 410 basis points (CER) to 67.9 percent , driven primarily by the removal of non-recurring inventory headwinds from the prior year.

This improved profitability was underpinned by tight financial discipline, with adjusted net operating expenses falling 5 percent (CER). A reported operating loss of 18 million pounds was recorded after accounting for a 37 million pounds restructuring charge related to the ongoing transformation, attributed primarily to staff redundancies stemming from the previously announced plan to eliminate around a fifth of the workforce as part of the cost-slashing strategy.

CEO Joshua Schulman commented, "We now have proof points that Burberry Forward is the right strategic path to restore brand relevance and value creation." "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... We move forward with confidence that Burberry's best chapters lie ahead," Joshua added.

Burberry's turnaround plan drives performance

Operationally, the focus on "Timeless British Luxury" strengthened brand desirability, with momentum building across key product categories. Outerwear and Softs (scarves and accessories) were the primary growth engines, outperforming in all regions and demonstrating double-digit growth for Softs. Leather goods showed sequential improvement but remained challenging overall.

Geographically, performance stabilized, with the Americas growing 3 percent and EMEIA growing 1 percent, both boosted by local customer spend. The Greater China region achieved a significant turnaround, moving from a 5 percent decline in Q1 to 3 percent growth in Q2, while Japan also returned to growth in the second quarter. The company’s efforts to elevate the in-store experience, including the launch of over 100 scarf bars, are on track.

Burberry reveals positive outlook

Looking forward to the full fiscal year 2026, Burberry remains confident in delivering continued margin improvement through its cost efficiency program, which is on track to deliver 80 million pounds in annualised savings.

Management guides for wholesale revenue to decline by a mid-single-digit percentage, reflecting a strategic shift towards a smaller, higher-quality partner network. Despite the uncertain macroeconomic environment, the Group is focused on building on its early progress in reigniting brand desire to secure a return to sustainable, profitable growth.