Burberry swings to FY profit, chair Gerry Murphy to retire

14th May 2026 07:56

(Sharecast News) - Burberry hailed a "meaningful inflection point" on Thursday as it swung to a full-year profit, underpinned by growth in the Americas and China, but shares in the luxury fashion brand slumped following a weaker performance in the Middle East and a cautious outlook.

In the year to 28 March, the company swung to a pre-tax profit of £49m from a loss of £66m a year earlier. Revenue dipped 2% to £2.4bn.

Burberry said it returned to comparable sales growth from the second quarter, with sequential improvement throughout the year and particularly strong performances in Greater China and the Americas, both of which saw double-digit growth in the final quarter of the year.

Group comparable store sales rose 5% in the fourth quarter, ahead of consensus expectations for 4.6% growth, with sales in Greater China and the Americas up 10%. This helped to offset a decline of 2% in EMEIA (Europe, Middle East, India and Africa), wihch Burberry attributed to reduced tourist activity in the region and the Middle East conflict towards the end of the quarter.

Sales in Asia Pacific were 3% higher.

Reported diluted earnings per share came in at 5.9p versus a loss of 20.9p the year before.

Chief executive Joshua Schulman said: "This financial year marks a meaningful inflection point for Burberry. We've returned to profitable comparable sales growth, with a strong fourth quarter driven by momentum in Greater China and Americas. Our strategy is working and there are clear opportunities for further growth.

"As we look ahead, while mindful of the uncertain macroeconomic environment, our focus is on disciplined execution of Burberry Forward. With increased brand relevance and product authority, I am more confident than ever that Burberry is firmly positioned for long-term value creation."

The company also announced on Thursday that Chair Gerry Murphy - who joined the board in May 2018 and is therefore reaching the end of his nine-year tenure - has decided to retire in November. He will be succeeded by William Jackson, who is the founder and former chief executive and chair of Bridgepoint.

Burberry said that under his leadership, Bridgepoint became a "substantial" global investment organisation with interests in many consumer-facing businesses, including brands such as Pret a Manger and MotoGP.

At 1005 BST, the shares were down 4.8% at 1,107p.

Dan Coatsworth, head of markets at AJ Bell, said: "Burberry's return to a more mid-tier and aspirational customer base is a tacit admission that in trying to compete at the high end of luxury it had flown too close to the sun.

"The more grounded strategy, emphasising the brand's 'Britishness' and concentrating on items central to its heritage like scarves and trench coats seems to be paying off after a third consecutive quarter of retail sales growth.

"Combined with tighter control of the purse strings, Burberry has found the recipe for a return to profit with its full-year results.

"Despite strong fourth quarter growth in the key North American and Chinese markets, investors were spooked by a weaker performance in the Middle East and Europe as well as a gloomy tone to the outlook.

"Chief executive Joshua Schulman didn't try and dress up the macroeconomic situation, as the Iran war hits tourism and puts spending on discretionary items under pressure. Management's decision to continue the freeze on dividend payments is another indication of their caution about the immediate prospects for the business.

"This conservatism, while poorly received today, may help in the longer term if it keeps expectations in check. However, given the miserable experience Burberry shareholders have endured in recent years it seems they were looking for a bit more sunshine alongside the rain."

See latest RNS on Investegate