Fashion
UK’s Burberry H1 FY26 revenue slips, Q2 sales show signs of recovery
The gross profit rose to £701 million, while gross margin expanded sharply to 67.9 per cent from 63.4 per cent, an improvement of 450 basis points (bps) at reported rates (410 bps at constant exchange rates). The company attributed this largely to non-recurring inventory headwinds in the prior year, including provisioning and inventory exits.
Burberry’s H1 FY26 revenue fell to £1.03 billion (~$1.36 billion), though margins strengthened as gross profit rose and adjusted operating profit returned to £19 million (~$25.08 million).
Comparable sales stabilised, with Q2 growth of 2 per cent.
EMEIA and the Americas grew, while Greater China and Asia Pacific improved.
For FY26, Burberry expects retail space to remain broadly unchanged.
The adjusted net operating expenses fell 7 per cent at reported rates and 5 per cent at constant exchange rates to £682 million, reflecting the impact of the ongoing cost efficiency programme and the absence of prior year store impairment headwinds, partly offset by inflation and targeted investments, Burberry Group said in a press release.
As a result, the adjusted operating profit reached £19 million (~$25.08 million) in H1 FY26, compared with a £41 million adjusted operating loss a year earlier. The adjusted operating margin improved to 1.9 per cent from a negative 3.8 per cent, an uplift of 570 bps at reported rates.
Net finance expense increased modestly to £30 million from £27 million, leading to a loss before taxation of £48 million, an improvement on the £80 million loss a year earlier. The attributable loss to shareholders narrowed to £26 million versus £74 million. Adjusted loss before tax improved to £11 million from £68 million and adjusted diluted earnings per share moved back into positive territory at 0.6 pence, versus a loss of 18.3 pence in the prior year. Reported diluted loss per share narrowed to 7.1 pence from 20.8 pence.
The retail segment remained the core of the business, accounting for around 85 per cent of retail and wholesale revenue. Retail sales declined by 1 per cent at constant exchange rates and 3 per cent at reported rates in the half, but like-for-like sales stabilised overall and improved as the half progressed.
Retail revenue totalled £854 million, down from £885 million a year earlier. Wholesale revenue fell to £148 million from £169 million, a decline of 12 per cent at reported rates and 11 per cent at constant exchange rates, albeit slightly better than guidance for mid-teens declines due to phasing and improved in-season orders from strategic partners after stronger sell-out of the Autumn 25 collection. Burberry reiterated that it intends to operate a smaller, higher-quality wholesale business in future.
Europe, Middle East, India and Africa (EMEIA) grew 1 per cent for the half, with both quarters delivering 1 per cent growth, supported by resilient local customer spending that offset weaker tourism. The Americas rose 3 per cent in H1 (up 4 per cent in Q1 and 3 per cent in Q2), driven by new customer acquisition, offsetting weaker tourist traffic in the United States during the summer.
Greater China declined 1 per cent over the half but returned to growth in Q2, with sales moving from a 5 per cent decline in Q1 to a 3 per cent increase in Q2. Growth in local customers partially offset weaker outbound tourist flows.
Asia Pacific declined 2 per cent in H1 but improved sequentially, from a 4 per cent decline in Q1 to flat in Q2. South Korea was flat for the half (up 2 per cent in Q1 and down 2 per cent in Q2), while Japan declined 5 per cent overall but swung from a 10 per cent decline in Q1 to a 2 per cent increase in Q2.
By division, accessories revenue declined to £343 million from £367 million, down 7 per cent at reported rates and 4 per cent at constant exchange rates. Womenswear was broadly stable at £312 million, flat at reported rates and up 2 per cent at constant exchange rates. Menswear revenue declined to £304 million from £324 million, down 6 per cent at reported rates and 3 per cent at constant exchange rates. Children’s and other categories fell to £43 million from £50 million.
Burberry continued to refine its store portfolio while investing in elevated in-store experiences. The group opened four stores and closed eleven during the half, ending the period with 415 directly operated stores and 31 franchise stores.
The network included 225 full-price stores, 136 concessions and 54 outlets, with Asia Pacific and Greater China representing the largest store bases.
“One year into Burberry Forward, my belief in this extraordinary British luxury house is stronger than ever,” said Joshua Schulman, chief executive officer (CEO) at Burberry Group. “With the consistency of our Timeless British Luxury brand expression and an improved product offer, we have begun to see customers return to the brand they love, resulting in comparable store sales growth for the first time in two years. While it is still early days and there is more to do, we now have proof points that Burberry Forward is the right strategic path to restore brand relevance and value creation. We move forward with confidence that Burberry’s best chapters lie ahead.”
For FY26 Burberry is expecting its retail space to remain broadly stable, while wholesale revenue is projected to decline by a mid-single-digit rate. The company anticipates delivering £80 million in annualised cost savings in FY26, building on the £24 million achieved in FY25. Restructuring charges are forecast at around £50 million for the year as part of the ongoing transformation. Currency movements, based on spot rates as of October 24, 2025, are expected to create headwinds of about £50 million on revenue and £5 million on adjusted operating profit. Capital expenditure for the year is planned at approximately £120 million.
Fibre2Fashion News Desk (SG)
This was mentioned by Commission President Ursula von der Leyen in her recent statement on the impact of the situation in the Middle East on the EU.
Robust intra-EU coordination, measures member states might apply to better protect vulnerable households and sectors from high energy prices, and ways to reduce energy demand are among the measures that the European Commission will present at the European Council meeting in Cyprus soon.
The protection measures should be targeted to vulnerable groups, timely and temporary, Commission president said.
“We are also looking into EU-wide coordination of member states’ gas storage filling, to avoid that many member states go to the market at the same time, so they are competing against each other. We will also coordinate oil stock releases, to achieve the largest possible effect of these releases. And we will ensure that member states’ emergency measures will not impact the Single Market,” her statement said.
“The [protection] measures should be targeted to vulnerable groups, timely—they have to be fast, not in a year but immediately—and temporary—so for a short amount of time you can apply them, but if they are cast in law, you have to make sure that you get out of the measures in a timely manner,” she noted.
This week, the Commission will consult member states on more flexible state aid rules—an important tool—to give members more space for temporary state aid support in the most exposed sectors.
“And my goal is that this temporary state aid framework should be adopted still this month—so that we have the new temporary framework for state aid in April,” she said.
“At the same time, we also need more structural measures to bring down energy prices and give relief to citizens and businesses,” she noted.
She said the only lasting way out of the fossil dependence is to modernise by shifting electricity generation to renewables and nuclear, and by electrifying the economy as rapidly as possible.
She encouraged member states to make better use of existing EU funding like the Cohesion Funds by investing it in grids, storage and batteries.
Fibre2Fashion News Desk (DS)
The March survey showed business confidence dropped 29 points to -29 index points, marking one of the steepest monthly declines on record, with similar falls previously seen only during the Global Financial Crisis and the onset of COVID-19, NAB said in a press release.
Despite the sharp fall in sentiment, business conditions eased only marginally, slipping by 1 point to 6 index points, indicating that economic activity has yet to fully reflect the impact of the external shock.
Australian business confidence plunged in March, falling 29 points to -29, while business conditions remained relatively stable, according to NAB.
Despite strong capacity utilisation, forward orders and capital expenditure weakened, signalling rising uncertainty.
Cost pressures intensified, with purchase costs doubling.
While some regions saw improved conditions, confidence declined nationwide.
The divergence suggests that while businesses are increasingly cautious about the outlook, operational momentum has remained intact so far. Capacity utilisation edged up to 83.1 per cent, staying well above its long-run average, with most industries continuing to operate at elevated levels.
However, forward-looking indicators signalled emerging weakness. Forward orders fell into negative territory, erasing gains made earlier in 2026, while capital expenditure also declined, reflecting rising uncertainty among businesses.
The impact of the geopolitical situation was more pronounced on costs, with purchase cost growth doubling to 3 per cent on a quarterly basis. Product price growth also increased, while labour cost growth remained steady.
Sector-wise, the decline in conditions was broad-based, with transport and utilities. Regionally, conditions improved in some areas such as Western Australia and South Australia, but confidence fell across all regions, highlighting widespread concern.
NAB noted that while the economy entered this period with solid momentum, the sharp deterioration in confidence underscores growing risks to the outlook as geopolitical tensions continue to weigh on business sentiment and future activity.
Fibre2Fashion News Desk (SG)
The company said the agreement marks a key milestone in its transformation journey, reflecting continued support from capital partners.
Saks Global has secured $500 million in exit financing under a restructuring support agreement as it progresses through Chapter 11, targeting emergence by summer.
The company is advancing its reorganisation plan, strengthening brand partnerships and inventory flows, with over 650 brands resuming shipments.
Improved inventory has boosted customer engagement, while it aims for double-digit EBITDA margins.
“Achieving this important milestone underscores the progress we are making on our transformation and reflects our capital partners’ confidence in our go-forward vision,” said Geoffroy van Raemdonck, CEO at Saks Global.
Saks Global is currently engaging with stakeholders on a formal Plan of Reorganisation, expected to be filed in the coming weeks. The retailer aims to emerge from Chapter 11 by summer with a strengthened financial structure, targeting double-digit adjusted EBITDA margins and long-term sustainable growth, the company said in a press release.
The company plans to leverage an integrated retail model, combining optimised physical stores in key luxury markets with distinct e-commerce platforms and remote selling capabilities. It also intends to enhance its curated product offering through stronger brand partnerships and deeper customer insights.
Operationally, Saks Global reported progress since filing for bankruptcy protection. Over 650 brand partners have resumed shipments, unlocking $1.5 billion in retail receipts and covering more than 90 per cent of expected inventory for the first quarter of fiscal 2026. March inventory receipts rose 18 per cent year on year (YoY).
Improved inventory flow has translated into stronger customer engagement, with spend per store visit increasing 6 per cent and online conversion rising 11 per cent. The company also noted gains in full-price selling across its banners, including Saks Fifth Avenue, Neiman Marcus and Bergdorf Goodman.
“As we advance the restructuring process, our focus remains on strengthening brand relationships and delivering personalised luxury experiences,” added van Raemdonck, highlighting confidence in completing the restructuring with sufficient liquidity and positioning the business for future growth.
Fibre2Fashion News Desk (SG)
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