Burberry half-year results: back to £54 million profit as revenue rises 6%

Burberry, the British luxury fashion house known for its trench coats and check pattern, returned to an operating profit in the first half of its financial year, according to interim results published on Thursday, 12 November 2026. For the 26 weeks to 26 September 2026, group revenue rose 6% to £1,098 million and reported operating profit was £54 million, against a loss of £18 million a year earlier. Adjusted operating profit rose to £62 million from £19 million. Comparable retail sales grew 4%, which the company said was its fifth straight quarter of growth under its turnaround plan, Burberry Forward. Its shares rose by around 8% in Thursday trading, according to market reports.

Luxury brands have been dealing with shoppers who are tired of steep prices, as reports on these results noted. Burberry made an operating loss in the same half a year earlier, and its Burberry Forward plan, launched about two years ago, was meant to bring it back to growth. These results are the clearest sign so far, in the company's own figures, that the plan is producing growth and profit.

Chief executive Joshua Schulman said the brand and business were stronger two years after Burberry Forward began, and pointed to five quarters of comparable sales growth. He also described how the company now builds its range as a price ladder, from cotton-cashmere socks and silk scarves at the entry level to leather coats costing thousands of pounds. Silk scarves in Britain start at £195, he said. For the fashion business, this is the lesson many labels are now drawing: entry-price products bring in new customers, while signature items protect the brand's standing.

The regional picture shows where luxury demand is coming from. Sales grew fastest in the Americas, at 12%, and Greater China returned to growth at 7%. Europe, the Middle East and Africa fell 2%, which the company linked to fewer tourists and weaker demand at its outlet stores. For designers and retailers in growing markets, including India, the figures are a reminder that luxury demand is uneven and that pricing has become as important as design.

The results also have a cost side. Burberry spent heavily in the half: its free cash outflow widened to £147 million, and it did not pay an interim dividend.

Peepals calculation: A 6% rise to £1,098 million means first-half revenue a year earlier was about £1,036 million (1,098 ÷ 1.06 ≈ 1,036). Adjusted operating profit of £62 million is about 3.3 times last year's £19 million (62 ÷ 19 ≈ 3.26), and it equals an adjusted margin of about 5.6% of revenue (62 ÷ 1,098 ≈ 0.056). The free cash outflow nearly tripled, from £50 million to £147 million (147 ÷ 50 ≈ 2.9). Our calculation from the reported figures.

Short-term: The return to profit lifted Burberry's share price on the day and strengthens the case the management has made for its turnaround plan.

Long-term: If growth continues in the Americas and China while Europe stays weak, the brand's sales mix will keep shifting away from its home region. Its use of lower-priced entry items alongside costly outerwear may be watched by other fashion houses trying to win back shoppers.

Who is affected: Burberry's employees, suppliers and investors; luxury retailers and department stores that stock the brand; and competitors in the premium fashion market who are watching how shoppers respond to pricing and entry-level products.

What to watch next: Burberry's full-year results for the 2027 financial year, against its stated expectation of further revenue growth and margin expansion.

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