The British luxury house reports improved profitability, renewed brand momentum, and early results from Joshua Schulman’s transformation strategy
Burberry says the 2025/26 financial year marked “an inflection” for the company as its Burberry Forward strategy began delivering early signs of recovery across both brand performance and profitability.
The British luxury house reported revenue of £2.42 billion for the year, remaining flat at constant exchange rates, while comparable store sales increased 2 percent. Adjusted operating profit rose sharply to £160 million from £26 million the previous year, with adjusted operating margin improving to 6.6 percent from 1 percent. Adjusted diluted earnings per share climbed 202 percent to 15.2 pence.
Chief executive officer Joshua Schulman described the year as an important step in Burberry’s transformation, pointing to strengthened brand relevance, sharper product positioning, and improved operational discipline under the Burberry Forward plan launched in November 2024.
At the center of the strategy is a renewed emphasis on what the company calls “Timeless British Luxury,” reconnecting Burberry to its heritage through a balance of tradition and innovation. The company has doubled down on outerwear and scarves as core product categories, reinforcing its longstanding authority in weather-protective fashion and the trench coat specifically.
Throughout the year, Burberry expanded retail initiatives designed to spotlight hero products, including the rollout of more than 200 Scarf Bars across its global network. The company also cited improvements in e-commerce performance driven by an upgraded digital experience.
Internally, Burberry continued reshaping its structure to support the transformation strategy, evolving its executive leadership team while strengthening merchandising, design, and product development functions. The company said it delivered £80 million in cost savings during the year, with combined annualized savings expected to reach £100 million by FY 2026/27.
Alongside operational changes, Burberry also introduced a revised corporate purpose and values framework centered around the phrase “To Embrace the Elements with Open Arms,” supported by the values “Protect, Explore and Inspire.” The company said the updated positioning is intended to embed the philosophy of Burberry Forward throughout the organization.
Sustainability also remained a key focus during the year. Burberry approved refined climate targets and its first Climate Transition Plan, extending its net zero target timeline from FY 2039/40 to FY 2049/50 as the company reassessed emissions data and industry-wide progress.
The year additionally marked several leadership transitions. Chairman Gerry Murphy announced plans to retire after serving since 2018, with William Jackson appointed Chair-designate effective July 1, 2026. Murphy described the company as building “strong momentum” while continuing its longer-term recovery and transformation journey.
Looking ahead, Schulman reiterated Burberry’s ambition to return the business to £3 billion in annual sales, emphasizing disciplined execution, stronger product authority, and renewed confidence in the future of the 170-year-old British luxury house.