Burberry Reports Interim Results for First Half of FY26, Signaling Strategic Turnaround | Luxyora

Burberry Group plc has released its interim results for the 26 weeks ended 27 September 2025, showing encouraging early signs of recovery amid challenging market conditions.
The company reported total revenue of £1,032 million, reflecting a 3 % decline at constant exchange rates (CER) and 5 % decline reported compared with the prior year.
Retail comparable store sales were flat (0 %), with sequential improvement across the period – 1 % in Q1 and +2 % in Q2. Adjusted operating profit reached £19 million, up from a £41 million loss in the same period last year, with adjusted operating margin improving to 1.9 % from –3.8 %. The group also recorded a significantly improved free cash flow position of –£50 million, compared with –£184 million in the previous year.

Burberry credited these gains to its “Timeless British Luxury” brand strategy, part of the ongoing Burberry Forward transformation plan under CEO Joshua Schulman. “With the consistency of our Timeless British Luxury brand expression and an improved product offer, we have begun to see customers return,” Schulman stated in the company’s announcement.

The company noted continued progress in product elevation, store experience enhancements, and operational discipline, with a gross margin expansion of +410 basis points at CER and a 5 % reduction in operating expenses. Burberry’s cost-efficiency program remains on track to achieve £80 million in annualised savings by the end of the fiscal year.