Burberry has swung back into profitable comparable sales growth, with chief executive Joshua Schulman hailing a “meaningful inflection point” as the trench coat maker closed out its financial year with a notably strong fourth quarter.
Comparable store sales rose 2% over the 52 weeks to 28 March 2026, reversing a 12% decline the previous year. The pace accelerated through the period, with Q4 up 5% group-wide, led by double-digit growth in Greater China and the Americas, both up 10%. Asia Pacific added 3% and EMEIA slipped 2%, weighed down by softer tourist flows and the Middle East conflict late in the quarter.
Outerwear outperformed in every region, while scarves were up double digits in the second half, helped by the rollout of 200 in-store scarf bars. Polo galleries and trench destinations are next, due in FY27. E-commerce climbed by a high-teens percentage.
Profitability improved dramatically. Gross margin came in at 67.9%, up 530 basis points at constant currency, while adjusted operating profit jumped to £160m from £26m.
If all the numbers were strong, why are Burberry shares down on Thursday? This is probably because the stock has had a strong run into results, and there are some signs of an impact from the war in the Middle East.
Mark Crouch, market analyst for eToro, says: “Burberry’s latest results suggest the fashion house is finally beginning to regain its footing after one of the most turbulent periods in its recent history.”
“Three consecutive quarters of sales growth may not sound like much by luxury sector standards, but for Burberry it represents something arguably more important, stability. After a bruising period that saw investor confidence collapse and shares tumble sharply through 2024, the last year has at least offered signs of positive consistency.”