Mixed results for Burberry: the positives include improved sales and better-than-expected margins, while the negatives, on the other hand, include the decision to not pay a dividend (which analysts had anticipated), weaker-than-expected wholesale growth, and a currency effect that was also worse than expected. Midway through trading on Thursday, May 14, Burberry shares were down about 5% on the London Stock Exchange. “Our strategy is working, and there are clear opportunities for further growth”, said Burberry CEO Joshua Schulman.
Mixed results for Burberry
Burberry reported revenue of £2.42 billion for the fiscal year ended March 28, 2026, down 2% at reported exchange rates and flat at constant exchange rates. Comparable sales in the retail channel grew by 2%, compared with a 12% decline last year. In the fourth quarter, growth was 5%, driven by performance in China and the Americas. The annual gross margin was 67.9%, exceeding Citi’s consensus estimate of 65.1%, while adjusted operating profit rose to £160 million from £26 million the previous year.
“In fiscal year 2027, we expect to make
further progress toward our financial goals, including revenue growth and margin expansion”, the British luxury company wrote in the release accompanying its financial results. “This fiscal year marks a significant turning point for Burberry. We have returned to profitable comparable sales growth, thanks to an excellent fourth quarter, driven by positive momentum in China and the Americas”, said Joshua Schulman, CEO of Burberry.
WWD reports.
The reasons
But it’s not all smooth sailing for Burberry, which, despite the clear improvement, faced a
difficult morning on the London Stock Exchange. Why? According to a report by Teleborsa in
La Repubblica, there are essentially three reasons: the failure to pay a dividend, whereas
Citi had forecast a payout of 9 pence per share. The wholesale growth target for the first half of fiscal year 2027 is below Citi’s forecast of 6%. Finally, the negative impact of exchange rates is approximately £10 million, compared to the consensus estimate of £3 million. Burberry also announced that current Chairman
Gerry Murphy will retire in November 2026 and will be replaced by
William Jackson, founder and former CEO of
Bridgepoint Group.
Photo from Burberry
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