Burberry returns to profit as turnaround lifts sales 6%

Burberry has returned to profit as stronger demand for coats, jackets and handbags helped its turnaround strategy gain traction in a difficult luxury market. Chief executive Joshua Schulman said the British brand’s renewed emphasis on its core products was delivering results, supported by growth in China and the US.

Revenue rose 6% to £1.098 billion in the 26 weeks ended September 26, 2026, according to Burberry’s interim results announcement. Reported operating profit reached £54 million, compared with an £18 million operating loss a year earlier, marking an improvement in the company’s financial performance alongside the increase in sales.

The results offer evidence that Burberry’s back-to-basics approach is finding customers even as the wider market remains challenging. Rather than presenting the improvement as a broad recovery in luxury spending, Schulman attributed the company’s performance to its own strategy and the appeal of its coats, jackets and handbags.

Burberry’s product range spans items such as £85 socks and coats costing around £9,000, illustrating the breadth of its pricing. Schulman described the brand’s approach as more democratic than that of some competitors. That positioning gives customers different entry points into the label while retaining its expensive outerwear and accessories.

The company said comparable retail sales increased 4% in both the first half and the second quarter, extending its growth streak to five consecutive quarters. Womenswear, menswear, childrenswear and accessories all recorded growth during the half. The breadth of those gains suggests the improvement was not confined to a single clothing category.

Online and wholesale sales also supported the recovery, adding to the contribution from Burberry’s retail business. The company reported e-commerce growth in the mid-teens and a 17% increase in wholesale revenue. Those figures provide further context for Schulman’s assessment that the brand was outperforming a difficult market, rather than relying solely on stronger demand through its stores.

Profitability improved more sharply than revenue, with adjusted operating profit rising to £62 million from £19 million. Burberry said operating expenses were flat at constant exchange rates while it continued investing in initiatives including marketing. The figures indicate that the recovery involves both higher sales and tighter control of the operating cost base.

The next test is whether Burberry can sustain that progress as its turnaround develops. Schulman expressed confidence in the business after two years of the Burberry Forward strategy, while acknowledging an uncertain environment. For now, the results show renewed momentum in the products central to the brand, rather than establishing that the luxury market’s wider difficulties have passed.