Burberry Hits Profit, as Turnaround Kicks In
Sales were flat in 2026, but profits improved considerably under the Burberry Forward strategy.
Reported by Vogue.
Burberry is not just stabilizing — it's actually making money again. The British house posted £2.42 billion in revenue for fiscal year 2026, and while top-line growth was essentially flat year-on-year, the more telling numbers were buried deeper in the report: adjusted operating profit jumped from £26 million to £160 million, gross margin expanded 5.3%, and reported operating profit swung from a £3 million loss to a £115 million gain. According to Vogue, the turnaround is real — and accelerating.
Credit goes to CEO Joshua Schulman, who launched the "Burberry Forward" strategy roughly 18 months ago. The thesis was straightforward: strip back, reconnect with the brand's original codes — outerwear, the check, Britishness done with intention — and stop chasing trends that don't belong to Burberry. It's working. Comparable store sales rose 2% in 2026, with Greater China and the Americas each up 10% in Q4. The Americas and Greater China each posted 4% growth for the full year. Asia-Pacific added another 2%. The one soft spot: EMEIA, where the Middle East conflict shaved 2% off Q4 regional comps — though Schulman noted the impact has stayed "quite localized," with the region representing just 2% of total sales.
Where the Growth Is Coming From
Outerwear and scarves — Burberry's clearest brand signals — were both up double digits in the second half. The house rolled out 200 scarf bars across its global stores, a surprisingly effective piece of retail theater that turned an accessory into a destination. China, which accounts for over 30% of total sales, is being courted with documentary films produced alongside Chinese National Geography, featuring local talent in seasonal outerwear across the country's landscapes. A large-scale brand experience in Shanghai is planned to close out the brand's 170th anniversary. Licensing — fragrance, beauty, eyewear — declined 9% as expected, part of a deliberate destocking of old fragrance lines. But Schulman flagged 2027 as the year licensees finally align with the new brand direction. The beauty pivot already has a face: musician Olivia Dean, shot in a trench coat against a London backdrop.
Schulman is projecting both revenue growth and margin expansion into 2027, with an additional £20 million in cost savings on top of the £80 million delivered this year. On the boardroom side, chair Gerry Murphy announced his retirement after eight years, handing the role to William Jackson, founder of Bridgepoint Group, who joins as a non-executive director in July.
The luxury sector has spent the last year in a cautious crouch, but Burberry's numbers suggest that focus — not reinvention — is the actual luxury play right now.
Read the original at Vogue.
