Burberry Shares Slide as Full-Year Results Show Recovery Underway But Revenue Still Falls

Luxury fashion house returns to comparable sales growth but revenue dips 2% in FY26

Burberry (LON: BRBY) shares fell sharply on Wednesday after the British luxury fashion house reported its full-year preliminary results for the 52 weeks ended 28 March 2026, with investors appearing to focus on a 2% decline in reported revenue to £2.42 billion despite a broader operational turnaround gaining traction.

The stock dropped 3.7% following the release, changing hands at around 1,084p at its session low on the London Stock Exchange.

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Chief Executive Joshua Schulman struck an upbeat tone, calling the year “a meaningful inflection point,” as the company returned to comparable store sales growth of 2% for the full year, recovering from a 12% decline in FY25.

Momentum accelerated sharply into the fourth quarter, with group comparable sales rising 5%, led by double-digit gains in both Greater China and the Americas.

Profitability recovered markedly. Adjusted operating profit surged to £160 million from just £26 million a year earlier, lifting the adjusted operating margin to 6.6% from 1.0%. Gross margin expanded 540 basis points to 67.9%, benefiting from higher-quality sales and a recovery following FY25’s inventory reset. Free cash flow more than doubled to £141 million.

Looking ahead, Burberry guided for revenue growth and further margin expansion in FY27, though cautioned over macroeconomic and geopolitical uncertainty. The company also announced that Chairman Gerry Murphy will retire in November 2026, to be succeeded by incoming Non-Executive Director William Jackson.