Burberry Operating Profit Triples to £62 Million
Burberry reported a tripling of first-half adjusted operating profit to £62 million, driven by strong outerwear sales and a successful turnaround strategy.
The British luxury house Burberry reported a significant increase in its first-half adjusted operating profit, which more than tripled to £62 million for the six months ending September 26. Revenues grew 6% to £1.1 billion, fueled by double-digit growth in signature gabardine trench coats and other outerwear. Comparable retail sales rose 4%, marking the fifth consecutive quarter of growth and exceeding analyst expectations.
Regional performance varied, with the Americas leading growth at 12% and Greater China rising 7%. Sales in South Korea also increased by more than 10%. Conversely, sales in EMEIA fell 2% as tourist spending weakened. Following the financial announcement, Burberry shares surged approximately 8% on Thursday.
CEO Joshua Schulman stated that the company's two-year turnaround strategy is working despite an uncertain external environment. For fiscal 2027, the company expects wholesale growth of 10% to 12% and annualized cost savings of approximately £100 million.
