Burberry announced that the fiscal year marked a 'meaningful inflection point,' with the company posting quarterly results driven by strong growth in the Americas and China markets [1]. Comparable sales grew 2% over the fiscal year, supported by a 10% increase in both the Americas and China during the quarter ended March [1]. CEO Joshua Schulman stated, 'We've returned to profitable comparable sales growth, with a strong fourth quarter driven by momentum in Greater China and Americas,' and emphasized that the company's strategy is working with clear opportunities for further growth [1].
Full-year revenue was reported at £2.4 billion ($3.25 million), which was flat at constant exchange rates and largely in line with expectations [1]. The company's adjusted operating profit for the year reached £160 million, a significant increase from £26 million the previous year, with Jefferies analysts attributing the 4% profitability beat to Burberry's cost-saving program, though noting it was likely below more bullish buy-side expectations [1].
Despite the positive results, Burberry shares fell 5% in early London trading following the announcement [1]. Analysts commented that the solid end to the year was anticipated as the company's turnaround efforts showed results, and referenced peer Moncler's strong quarter in April [1]. However, comparable sales in EMEA and India declined 2%, attributed to reduced tourism and the impact of the Middle East conflict towards the end of the quarter [1].
Burberry acknowledged the uncertain geopolitical and macro-economic environment and its potential impact on consumer confidence, but expressed confidence in making further progress on its financial ambitions in 2027 [1]. The company also noted that the conflict in the Middle East has negatively affected many of its peers, with LVMH, Kering, and Hermes all missing earnings expectations last month due to subdued sales in the region [1].
CONCLUSION
Burberry delivered a return to profitable comparable sales growth, driven by strong performance in the Americas and China, and a notable increase in operating profit. However, shares declined amid concerns over EMEA weakness and broader macroeconomic uncertainty. The company remains optimistic about further progress toward its financial goals in 2027.